New £25000 unsecured loan product launched

A new lender is being brought to market by Loans Warehouse and will fill a gap that has existed since the days of Blackhorse & CitiFinancial - unsecured loans up to £25000 at sensible rates.

Sam Busfield director of Loans Warehouse told us:

“The new product works on a "lifestyle" underwriting basis so even if a customer is in DM or has an IVA they could still be accepted if they meet other criteria”

“Only a few companies will have access to the new product day one and Loans Warehouse are proud to be able to put unsecured lending back on the radar for finance brokers”

The product, for homeowners only, offers unsecured loans from £5000 to £25000 for any sensible purpose; other criteria includes:

- Rates from 9.4% to 12.5% APR

- Employed and Self Employed (accountant's reference will be required)

- No ‘rate for risk’, the rate is the same for all

- Repayment terms from 36 to 180 months

- Day 1 AIP

- Flat rate commissions

The loan works on the basis of “lifestyle” underwriting as opposed to being solely reliant on a credit search. They will look at things like pensions and how a borrower is planning for the future. Because of this approach, the loan can also be available to people who have credit problems, are currently in Debt Management or have an IVA.

Matt Tristram, Company Director of Loans Warehouse, said:

“On 31st January 2011, Blackhorse Personal Finance accepted their last unsecured loan application and that date is widely considered to mark the death of traditional broker based unsecured lending. Now 1 year and 36 days later we’re pleased to tell you Unsecured lending is back, with a product that we believe could be really useful to the intermediary market.”

“I didn’t think I would be saying unsecured loans from £5000 to £25000 at rates from 9.4% to 12.4% APR available through Loans Warehouse for a few years yet!"