Unsecured Loan

A personal loan that is not backed by collateral, unlike a mortgage or secured loan, which are backed by the house which is mortgaged. A personal loan is not secured against a house or other collateral, which means that the bank cannot repossess a house in the event of default. As there is no collateral to back the loan, the bank will carefully check the lender’s creditworthiness and ability to repay the loan before granting the loan facility.

From the borrower’s point of view, an unsecured personal loan is more attractive than a secured loan, as their home cannot be claimed by the bank. However, as this type of loan is slightly more risky for the bank, a higher interest rate than those offered on secured loans is normally charged.

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Accident Sickness And Unemployment Insurance (ASU)
Additional Cardholder
Adjudication
Administration Order
Adverse Credit
AER
Agreement In Principle
Amortisation
Annual Equivalent Rate (AER)
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Annuity Mortgage
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Base Rate
Bridging Loan
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Capital And Interest Mortgage
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Charge Over Equitable Interest
Charging Order
CIFAS
CIFAS Case Type
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CML
Collar
Collateral
Commission
Consolidation Loan
Consumer Credit Act 1974
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Cooling Off Period
County Court Judgment (CCJ)
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Credit Agreement
Credit Card
Credit Card Cheques
Credit File
Credit Impaired
Credit Limit
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Credit Reference
Credit Report
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Deed Release Fee
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Depreciation
Disassociation
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Enquiry
Equifax
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Equity Release
Experian
Extended Credit Taker
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Financial Association
Financial Ombudsman Service
Financial Services Authority (FSA)
First Mortgage
Fixed Rate
Fixed Rate Mortgage
Flexible Loan
Forced Sale Value (FSV)
FSA
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Full Payer
Further Advance
GAIN
Garnishee Order
General Insurance Standards Council (GISC)
Geodemographic Data
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Gone Away Information Network (GAIN)
Guarantor
Health Insurance
Higher Lending Fee
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Lump Sum Reduction
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Mortgage
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Mortgagee
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Negative Equity
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Notice Of Arrears
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Notice Of Default
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Offset Mortgage
Ombudsman
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Overdraft
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P60
Payment Holiday
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Plastic
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Principles Of Reciprocity
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Scottish Decree
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