Godiva Mortgages has become the latest lender to withdraw its combined mortgage and unsecured loan range.

This comes hot on the heels of Alliance & Leicester's announcement that it would be withdrawing its Plus Mortgage range at close of business today.

Godiva says its MOREgage range will be withdrawn from February 22.

Managing director Colin Franklin says:“These products have been a useful addition to our portfolio and have performed well. During 2007 we saw a steady reduction in the demand and certainly the number of applications we have accepted has reduced.

"MOREgage applications have reduced to a negligible level and it is no longer cost effective to maintain the additional underwriting processes for these higher loan to value loans.“

Northern Rock was the first lender to enter this market with its Together product. The product has come under fire recently by MPs following the demise of Northern Rock, calling the product reckless and demanding for it to be withdrawn.

In an email to brokers, A & L says that pipeline applications and existing PlusMortgage borrowers will be unaffected and will continue to be serviced as normal.

Where can I apply for an unsecured loan?
Unsecured loans are available from a wide range of lenders, from high street banks and building societies to Internet only lenders. You can therefore apply for your unsecured loan in a variety of ways depending on which lender you are going through.

The choices include calling in at the lender's officers or the local branch of the bank, calling the lender to make a telephone application, or easiest of all making an online application if the lender offers the facility to do so.

What are the benefits of an unsecured loan?
The benefits of an unsecured loan are many. Firstly, you don’t have to be a homeowner in order to get an unsecured loan. Also, you can get some competitive deals on unsecured loans, with a wide range of lenders.

Most importantly an unsecured loan is not secured against any asset, and this means that you will not risk losing your home or other assets in the event that you default on repayments, although your credit will be badly affected if you do this.

Are there any disadvantages to these loans?
The main disadvantages are that these loans are generally not available to those with poor credit, and that the borrowing levels and repayment terms are lower than those offered with secured loans.

News Source:
http://www.moneymarketing.co.uk/