An unsecured loan is a type of personal loan.
This kind of personal loan is money that is lent to you that is not backed by any physical collateral.
In other words, it is a loan that you take out without having to secure any of your property against.
Unsecured loans are typically considered more risky for lenders because it is more difficult for them to get their money back should you default on the loan.
For this reason, unsecured loans typically have higher interest rates than other loans. Only take out a loan after you’ve read reviews of the products you are considering purchasing, on a trusted site such as reviewsbird.co.uk.
A mortgage is a special kind of loan. It is a large amount that is lent for a property purchase. The repayment terms are usually long, and the loan is backed by your house.