The difference between personal loans and secured loans

• The difference between a personal loan and a secured loan is that you have to offer your home as security when borrowing from a secured loan lender.
• The main advantage of taking out a secured personal loan is that the lender may be able to lend you more than those offering unsecured loans, and they are also likely to be able to offer you a longer repayment period. For example Nemo could lend you up to £100,000 over a term of up to 25 years.*
• You might find that the Typical APR on a personal secured loan is lower than that offered by unsecured loan lenders, and if you’d like to shop around to see what the various lenders can offer, you could use a price comparison site to help you. Nemo’s Typical rate is 11.4% APR variable.

The difference between a personal loan and a secured loan is that you have to offer your home as security when borrowing from a secured loan lender.

What you might use a secured loan for

• Adding an extension, conservatory or carrying out general home improvements can be costly. If you have a big home improvement project then a secured loan might be a financing option you could consider.
• On the other hand, you may have multiple credit spread over several credit cards, store cards and other unsecured loans. Using a secured loan to consolidate your existing credit could help lower your monthly repayments.

*Repaying borrowing over a longer term may increase overall interest charges. Secured loans from Nemo are for personal purposes only. Nemo does not provide secured loans for investment or business purposes. A Nemo loan is secured on your home and is for homeowners with a mortgage only. All loans are subject to status.