The interest rates for unsecured loans are at one of the most expensive ever with interest rates very much higher than in 2001 which may surprise many due to the Bank of England Base Lending Rate being at the lowest rate in history.
In 2001 it was possible to obtain an unsecured loan from about 6% APR and this was when the base rate was also 6%.
An unsecured loan is as such at the highest rate in spite of the low Bank of England Base Lending Rate compared to the rate in 2001.
In addition to interest rates being very high, it is also much more awkward now than it ever has to be granted unsecured loans. However, as has always been recognized unsecured loans have never been available to people with a poor credit profile.
An unsecured loan lender has not the confidence to completely believe that the applicant will repay the lborrowings, the loan provider always requires total proof of the reason for borrowing in the first instance.
For people who own their property there is no requirement to worry about unsecured loans as they have the option of secured loans also known as homeowner loans.
Why these loans have the name secured loans is because they need to be secured against a property and are only available to those who own their home.
These secured loans are not as difficult to achieve as are unsecured loans and also because homeowner loans are secured , loan lenders have less strict underwriting attached.
This more lax underwriting for example means that no additional proof of the reason for the loan apart from stating the purpose for the loan on the application form is required.
Homeowners who have a bad credit rating can still be eligible for secured loans as there is a good amount of equity in his property and such people would never be granted unsecured loans..
Another choice available in addition to secured loans for homeowners needing finance is a rremortgage which has a good range of uses, making both a secured loan or a remortgage the best kind of loan for homeowners.