Should You Apply for a Secured or Unsecured Loan from NatWest?
NatWest is recognised as one of the top choices for home mortgages. They also offer additional types of loans, including personal and business loans.
When you need funds, obtaining a loan is often the only option. Most types of loans fall into one of two categories – secured and unsecured loans. There are advantages to both choices. However, if you have equity in your property, a secured loan may provide the most effective financial solution.
Secured vs Unsecured Loans
At UK Property Finance, we regularly help customers find the best loans based on their specific financial situation. In most cases, a secured loan ends up being the best option, due to the following advantages:
● Loans are available for those with poor credit
● Borrowers often receive lower interest rates
● Secured loans may offer higher borrowing limits
● Secured loans often provide longer terms
When applying for an unsecured loan through NatWest or any other UK lender, the lender examines several factors to assess the risk of approving the loan. They want to ensure that you can pay back the loan.
The main factors that are considered include your credit history, income, job stability, and the details of the loan. Based on these elements, the lender may deny your application or offer a loan with a higher interest rate to offset their risk. These factors may also limit the amount that you can get approved for.
Primary Features of a Secured Loan
With a secured loan, credit history and income are less crucial compared to the collateral that you use to secure the loan. Most lenders only accept real estate property as collateral for a secured loan, allowing property owners to use their equity to secure the loan.
The amount that you can borrow is often only limited by the amount of equity that you have in your property. The upper limit offered by most lenders is between £200,000 and £250,000.
When you apply for a secured loan, you may also choose a longer loan tenure. The typical loan length for an unsecured loan is between two and five years. With a secured loan, you may create a repayment plan to pay back the loan in 25 to 30 years.
If you need help choosing the right type of bridging loan, call us today at UK Property Finance to talk to one of our experienced loan brokers. We can review the best loan products from over 100 of the top UK lenders, including NatWest.