Applications from
private and council tenants welcome!
Burtplan welcomes personal loan applications
from private tenants, council tenants, if you live with your
parents, if you do not own a home, if you have a good or
bad credit record or if you have been declined elsewhere,
for whatever reason. If you are a homeowner but do not want
a loan secured on your property then we can also help.
Burtplan is a specialist lender of unsecured personal loans
to tenants and non-homeowners. Burtplan was established
in 1957 and can bring many years of experience to meet your
financial needs, offering a broad range of flexible personal
loan products. Unsecured loans – typical 46.9% APR.
What is the difference between a secured and an unsecured
personal loan?
A secured loan uses your home as collateral or
security for the lender, so the lender is very confident
that he will be repaid. The lender gains an interest in your
property and has the right to repossess it in the event of
loan default. For this reason, secured loans are normally
available even to people with adverse credit history, provided
there is sufficient equity available in their properties.
Lenders may also be relaxed about missed payments as they
know that they have the legal right to recover the full amount
of the debt. The advantage to the borrower is that the interest
rate is normally lower than for unsecured loans but you risk
losing your home if you cannot afford to keep up repayments.
An unsecured loan carries less risk to the borrower due
to the fact that his/her home is not used as collateral or
security for the lender. Borrowers will not normally lose
their homes if they cannot afford to keep up repayments.
When applying for an unsecured loan, most large lenders
use credit scoring techniques to assess the creditworthiness
of applicants. (Please note that Burtplan does not credit
score, taking each application on its own merits.) Consequently,
applicants with a poor credit will find it more difficult
to have their loan applications approved. The credit checking
process means that unsecured loans take longer to be approved
than secured loans. The credit check will look at factors
such as your address, whether you are on the electoral or
voters role, how frequently you change address, public information
such as bankruptcy or CCJs and whether you have ever defaulted
or fallen into arrears on past credit agreements.
However, when your unsecured loan application has been approved,
it is faster to obtain than a secured loan as there is no
need to value your home. Other advantages to the borrower
are that unsecured loans can be more flexible and the borrower
has greater control over the repayment profile. It is typical
that the lending sum offered is restricted to less than £20,000
and the maximum loan term allowed is five years.
Unsecured loans carry a higher interest
rate as the lender bears more risk. Lenders may be more aggressive
in chasing late or defaulted payments because they do not
have the security of being able to claim your house if you
don't pay back the loan.
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