Whether for a new car, upgrading your kitchen or a house renovation our selection of loans can help you discover the best product for your requirements. View our best loan rates below or read our guide to loans to learn more. 

Personal Loans

Borrow up to £35,000 over 10 years with a personal loan.

  • Get a pre-approved loan without impacting your credit score and see who will offer you a loan today
  • Compare rates from across the market
  • Options for repayment holidays and no early repayment charges
  • Choose those loans that accept debt consolidation
Secured Loan

Borrow larger sums of money, secured against your home or property usually for a duration of 10 years or more.

  • Review the market to see the range of secured loan rates on offer
  • Speak to our preferred secured loan broker for free advice
  • Available for home improvements, a new car or a holiday
  • Options for debt consolidation
Poor Credit Loans

Loans for those with a low credit score or who may have had issues with repaying finance in the past.

  • Get a no obligation loan quote today
  • Options include guarantor loans
  • See which lenders and at what rates they would accept you for a loan
  • Easy and fast process that doesn’t impact your credit score
Disclaimer

Moneyfacts.co.uk shows whole of market personal loans and secured loans information. For all secured loans will refer you to Loans Warehouse. For personal loans you can choose to go to a lender directly using the Go to Provider button or can opt to use Loans Warehouse to find which lenders will pre approve you for a loan.
Loans Warehouse is an independent credit broker authorised and regulated by the Financial Conduct Authority, who offer a personal loans pre-approval service. Any legal or contractual relationship will be with them. Moneyfacts.co.uk Limited is an independent credit broker not a lender and will receive a payment from Loans Warehouse where customers take a loan following a link to them from Moneyfacts.co.uk. This arrangement does not affect our independence.

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Loans explained

nigel woollsey

Nigel Woollsey

Online Writer

How to choose the right loan for you

There are many factors that need to be taken into consideration when choosing the best loan for you. An important decision you need to make is whether to choose a personal loan or a secured loan ; this may come down to how much you want to borrow, but it’s also worth keeping in mind the risks associated with a secured loan. In addition to this, you need to consider how long you want to borrow the money for, and will also need to think about your credit score, which could impact whether or not you are approved for a loan as well as the interest rate you are charged. 

What are the different types of loan?

There are basically two types of loan: secured and unsecured. A personal loan, sometimes also referred to as an unsecured loan, allows people to borrow a smaller amount of money – usually up to £25,000 – which is repaid in monthly instalments over a set number of years. This is where you are not obliged to offer any collateral against the money you are borrowing. Instead, your ability to repay will be judged by your circumstances, income, current debts and credit rating among other factors.

A secured loan allows people to borrow a larger sum of money – sometimes up to £1 million or more – which also must be paid back in monthly instalments. The key difference, however, is that the borrower has to secure an asset of high worth – normally their home – against the loan in order to borrow the money. If you fail to keep up with your mortgage repayments, the lender could repossess your property and sell it to recoup the monies you owe. Businesses in search of a secured loan may put up their commercial property or other assets against the value of their loan.

Secured loans are often considered riskier than personal loans, as if you fail to make the repayments it could result in you losing the asset you’ve secured against the loan, which means you could potentially lose your home if you default. 

What can I use a loan for?

Unsecured and secured loans can be used for a variety of purchases and even for the purposes of consolidating existing debts on other credit cards, loans, overdrafts or HPI agreements. Remember though that lenders will want to know the reason why you are applying for a loan as this may impact their decision or the terms under which they will offer the loan.

Reasons to get a loan include:

• To make home improvements
• To buy a car
• To consolidate other debts
• To pay off a credit card
• To go on holiday

Where can I apply for a loan?

These days the market is full of lenders all vying for your loan business. These can be from the traditional high street banks through to the new digital-only providers, insurance companies, department stores and even your supermarket! If you are looking for a small loan, you may also find help from your local credit union.

How do I apply for a loan?

Most loan applications are pretty straightforward. You’ll be expected to provide your usual personal details and employment details, including your salary and how long you have worked there. You will also be asked what you plan to spend the loan on, as well as your monthly outgoings and details of any outstanding debts such as credit cards, mortgages, other loans or HPI payments.

It’s important to be honest and open – especially about any existing debts you have. Lenders ask for these details to ensure that you will be able to afford the loan repayments and to prevent you from increasing your debt level beyond your ability to repay what you owe.

For secured loans, you might find that the lender requests proof that you are the owner of the assets that you are securing against the loan. The process for obtaining a secured loan is similar to getting a mortgage, requiring in-depth checks and documentary evidence to support your application. In fact they are a form of regulated mortgage arrangement. You will have two mortgages secured against the property rather than the property secured against two mortgages.

Loan applications can be made in writing (using an application form from the lender) or online – with regards to electronic applications some lenders can give you an instant decision on whether you are loan has been accepted or needs to be looked at further.

What is a pre-approved loan?

Pre-approval is often spoken about in terms of mortgages and personal loans. Most often, you might receive a letter advising that you have been ‘pre-approved’ for a loan or credit card – while many of these mailshots tend to end up in the recycling, you may be able to consider the offer. But just what is a ‘pre-approved loan’?

Essentially pre-approved does not mean that your loan application will be automatically accepted – although many people wrongly feel that it does. In fact, this means that the lender is offering a loan pending full approval. In other words, even though you are pre-approved, there is no guarantee that your loan application will be successful.

So what’s the point of being told you are ‘pre-approved’? Well, it’s important to remember that being ‘pre-approved’ means that the lender may be able to approve your application once you have made a full application. A lender may well have carried out a limited check and identified you as being potentially eligible for a loan or credit card.

In many instances, an invitation for a pre-approved loan means you have already cleared the first hurdle and the lender would welcome an application from you. However, any loan will still be dependent on a full application and you passing more stringent financial checks.

In some instances, online loan applications may have an automated first check that accepts your loan application in principle. Again, this form of pre-approval is not a conclusive agreement to provide you with the loan but rather a way of signalling that your loan application has passed the initial checks. Full approval will normally come after, once your application has been looked at in more detail.

What does a ‘conditional’ loan offer mean?

Conditional approval for your loan means that your application and any financial evidence you’ve supplied (such as payslips and employment details) have been accepted in principle and the chances of your being considered for a loan or credit card are good. However, just as with pre-approval, the application must be finally confirmed by the lender’s underwriting team.

What happens if I miss a loan payment?

Missing a loan repayment will normally result in a warning letter from the lender asking you to pay the missed repayment as soon as possible. Miss more than one payment and you might find that the lender will demand payment to bring your account back into order immediately or even require you to repay the whole amount owed. If you fail to do this or simply ignore the lender, you may find yourself being taken to court over the debt.

When taking out a loan, you are essentially entering into an agreement with the lender that you will make regular repayments of a fixed sum for a specific length of time. Failing to make a repayment may put you in breach of that agreement.

Missing payments may also mean an immediate referral to a credit reference agency and negative impact on your credit score.

Legal action is always a lender’s last resort. If you are having financial difficulties and cannot make the repayments, you must contact the lender as soon as possible so that alternative arrangements can be made.

How many loans can I have at once?

There’s no limit to the number of loans you can have running at the same time – just so long as you can afford all the repayments that you’ve committed to. Lenders take great care not to offer people loans that they cannot afford, but you must be honest about any existing debts you already have when applying for a loan.

Can I pay my loan early?

Yes, early repayment can be an option, but the lender may choose to charge you an ‘early settlement fee’. This is to offset the loss of the interest on the loan that you would have paid if you would have continued repayments to the end of the term.

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