Are personal loan rates usually lower for secured or unsecured loans?

21 Sept 2026, 02:27
Q A Reader Asker

Are personal loan rates usually lower for secured or unsecured loans?

A PoundWise Team Answered by

Secured loans often advertise lower rates than unsecured personal loans because the lender has an asset, such as your home, as security. However, your actual rate depends on factors including your credit history, income, loan amount and term, so compare the representative APR and the offer you receive. With an unsecured loan, your property is not used as security, but missed payments can still damage your credit record and lead to debt collection or court action. Consider the risks and total cost carefully, and check offers from FCA-authorised lenders before applying.

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