The Glossary

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The Letter U
This section provides information on terms and phrases beginning with the letter U
At the grabber we know finance is full of confusing terms and phrases, and so on this page we explain:
Underpayments | Unsecured Loan

Underpayments

Underpayments are a benefit of a financial product with which the holder is able to pay less than the normal payment charge. Such as with credit cards, paying below than the required monthly repayment and with flexible mortgages. This means that borrowers can take a break from their loan or mortgage when under financial difficulties, or when wanting to purchase that expensive item that may leave them short of funds. When the emergency as passed the borrower can then proceed with their repayments with out incurring penalties. Some if not most lenders will require that an overpayment is made before an underpayment or a payment holiday would be acceptable.

Unsecured Loan

An unsecured loan is a loan that does not have loan security. Rates will be higher than homeowner loans because to loan lenders these loans represent a higher risk. Terms, conditions and the APR may be higher or more strict to mirror the higher risk to lenders of a non recoverable debt. That means if the borrower defaults and ignores contact, the lender is restricted in how they can recover the finance they lent. If the unsecured loan is going to be repaid over a longer term, bear in mind that more will be paid back in interest for borrowing the loan.
Unsecured loans are typically not for speculative purposes or for business uses, these usually require a homeowner or "secured loan". It is dependant on the individual lender but some other purposes may also be excluded. Unsecured loans are usually called tenant loans, as they are more suitable for non homeowners.
If you want finance and don't own your home, the Grabbers has a tenant loan section.

Got a piece of jargon you want explaining, it's time to let The Grabber loose.