What is the difference between secured and unsecured loans?
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In short: Unsecured loans need no collateral — typical £1,000–£25,000. Secured loans use property as security — failure to pay can lead to repossession after court process.
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Reviewed by Kaiser Khan
Unsecured rates price on credit score and affordability.
Secured homeowner loans may offer larger sums but carry property risk.
Regulated loans cap early settlement charges — check before overpaying.
See compare personal loans guide.
Primary source: fca.org.uk/consumers/loans
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