Personal Loan Information

Definition of Personal Loans

The term 'personal loans' is one used to describe a loan (can be a single or joint application). Most people class all types of loan as personal loans. However, as far as the lenders are concerned, a personal loan is an unsecured loan.

It does not involve any form of financial security such as your property to be secured against it. Your approval, and the rate offered will be determind by your personal credit history.

What are personal loans
Secured personal loans
Unsecured personal loans
What you can use your loan for
Personal loan criteria
Popular questions

What are Personal Loans

Personal loans can be split into two different categories; Secured personal loans and, unsecured personal loans. Both have their own advantages depending what you are looking for in your loan.

Secured Personal Loans

Secured personal loans: are only available to homeowners with a mortgage. They use your home as a form of security against the repayments of your loan (this is done by means of a second charge against your property). Providing you have the spare equity in your home (we can arrange loans up to 125% of your property value), you can borrow large sums of money (£3K to £150k) over a period of time between 3 years and 25 years (sometimes even longer), this makes a secured personal loan much like a mortgage in the way the loan is set up.
Top

Unsecured Personal Loans

Unsecured personal loans: have the advantage of being potentially quicker to arrange, and are open to homeowners and tenants alike. Unsecured loans are available between £1k - £15k (up to £25k for homeowners with some lenders) between 1 year and 5 years (some lenders may offer longer terms). For larger amounts you will need a relatively clean credit history and need to be employed. Because they are not secured against your property, it reduces the amount of work involved in processing your loan. This means you could have the loan within 48 hours.
Top

Reasons for Personal Loans

The list of reasons personal loans can be used for is almost endless. In most cases the lenders will need to know the reason for your personal loan. For example, for a wedding, debt consolidation, a new car or perhaps for home improvements. The main reason for this is to simply to help them to determine affordability. For example if you have 3 credit cards and 2 further loans but do not wish to consolidate them into the loan, your income may not be sufficient to justify your new loan.
Top

Personal Loan Criteria

Every lender in the UK has a slightly different criteria for their personal loans rates. Some lenders specialise in loans for people with bad credit, others may have better rates for people with an A1 credit rating, there are even some lenders that will lend up to 125% of your property value. 1 Stop Loans has access to most UK lenders and specialist brokers so that we can find loans at the best possible rates.
Top

Each of our personal loans will require a credit search to be performed, however this is not immediate. By simply filling in any of our personal loans applications we can still provide you with a loans quote in principle. Should you then decide to proceed further, we will have to perform a credit search for the lender. - Before we do anything, we will inform you.
Top