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Finding you a better loan deal

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UK Loan deals

Loans from
£1,000 to £2.5m

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We found 4 loans for £25,000 over 10 years

Min-max loan: £10,000 - £500,000
Cost: £345.83 per month
Term: 3 - 25 years
APR: 6.6%
£10,000 - £500,000
£345.83 per month
3 - 25 years
more info Call now0800 0848 029

Representative APRC: 6.6%


Min-max loan: £7,500 - £350,000
Cost: £351.25 per month
Term: 3 - 30 years
APR: 6.86%
£7,500 - £350,000
£351.25 per month
3 - 30 years
more info Call now0800 0848 029

Representative APRC: 9.2%


Min-max loan: £25,000 - £1,000,000
Cost: £369.79 per month
Term: 5 - 25 years
APR: 7.75%
£25,000 - £1,000,000
£369.79 per month
5 - 25 years
more info

Representative APRC: 10.4%


Min-max loan: £10,000 - £500,000
Cost: £376.88 per month
Term: 3 - 30 years
APR: 8.09%
£10,000 - £500,000
£376.88 per month
3 - 30 years
more info Call now0800 0848 029

Representative APRC: 10.8%



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£25000 Loan

Whether you’re looking to take out a £25000 loan for home improvements, car purchase or debt consolidation; there are a number of different finance options that you should be aware of before committing to a deal.

Generally, borrowers of £25000 loans tend to obtain the finance through either a secured loan or a personal loan. In order to get the best deal to suit your individual needs, it is important to shop around different providers and to consider the different term lengths and interest rates available as this will affect the cost of your repayments.

How much does a £25000 loan cost

This will depend on your circumstances, but assuming you have an excellent credit score then you should qualify for a top of the market personal loan rate.


Borrow: £25,000

5 year term

Interest rate: 3.7%

Monthly repayments: £457.04

Total cost of credit: £2,422.17

Total loan repayment: £27,422.17

Calculations are based on the interest rate being fixed over the term and no repayments are missed.

Secured loan vs. personal loan

There is no right or wrong answer when it comes to choosing between a secured loan and a personal loan. Each loan will suit a borrower differently depending on their personal circumstances. 

Secured loans are obtained through securing the equity that you own in an asset (usually your home) as collateral against the loan. Secured loans are usually favourable when looking to borrow large amounts of money; you can typically expect to borrow anything from £10,000 to £2.5m over a lengthy period of time.

A secured loan might also be preferable for those with bad credit ratings looking to borrow capital.

A personal loan on the other hand tends to be more straightforward than other forms of finance.

As the loan is unsecured, it does not require you to put an asset (such as your home) down as collateral against the loan. Personal loans are offered by the majority of banks and other lenders, and you can typically expect to borrow between £1,000 and £25,000 over a relatively short period of time (in comparison to a secured loan).

Although you are usually offered higher interest rates with personal loans, you tend to pay back a smaller amount in total as the loan terms tend to be shorter than secured loans.

Personal loans

We all know that our financial obligations can be tough to manage now and then. 

Sometimes, we require a bit of extra help to tackle unexpected expenses, seize opportunities which come our way, or make important life changes. 

Fortunately, lenders exist to help you bridge the gap between your existing funds, and the sum you need. 

Loans can provide a way for you to obtain the cash required to cover costs which require short term attention. 

In this guide, we’ll explore the realm of personal loans together, focusing on borrowing a sum of £25,000.  

Whether you’re looking to consolidate debts, start the business you’ve been dreaming up, or invest in your future by pursuing further education, understanding the fundamentals of borrowing money is key to following through on your financial goals. 

From assessing your borrowing needs to finding the right loan option which suits your budget, we’ll provide insights to help you navigate the path to getting a loan application over the line. 

What's a personal loan? 

If you’re looking to borrow around £25,000 for personal use, you’ll likely be offered this cash in the form of a personal loan. 

You might have come across the term before as it’s a highly popular form of personal financing. However, what does it really mean? 

A personal loan is simply a type of loan which is provided by financial institutions, such as banks, credit unions, to individuals like you. They’re intended for personal use, rather than to bankroll a pre-existing business venture, for example.  

Unlike loans which are specifically designated with a particular purpose in mind, like a mortgage to buy a home or a car loan to purchase a vehicle, personal loans offer a great degree of flexibility in the amount of money you can borrow, and how the cash can be used once you’ve received it. 

When you get your hands on a personal loan, you’ll receive a lump sum of money which you’re then expected to pay back over a fixed period of time, typically through monthly instalments paid directly to the lender you choose. 

The specific details of the loan such as the amount you borrow, the interest rate you’ll be charged, and the general repayment terms are determined based on a few factors which are considered by the lender prior to giving you approval.  

Things like your credit score, the stability of your income, and your behaviour surrounding financial obligations all factor into the lender’s final decision. 

Are there different types of personal loan? 

There are a couple of different ways to go about arranging a personal loan.  

Generally, they can either be secured or unsecured.  

A secured personal loan means that you need to provide the lender with collateral, such as a savings account, a car, or any other assets of value which the lender can seize if you default on the loan. 

Generally, to get a £25,000 secured loan, the value of the collateral would either have to match the sum of the loan or exceed it.  

The lender will assess the asset’s value before offering you any money, so you don’t need to worry about making an inaccurate guestimate and ending up in hot water later on. 

In contrast, an unsecured personal loan doesn’t require you to put up any collateral, but they often come with a higher interest rate since the lender takes on more risk by lending you money as there’s no security should things go wrong. 

To get an unsecured loan of £25,000, it’s likely that you’ll need to have a robust track record of excellent credit use, as well as enough income to comfortably meet repayments whilst managing your day-to-day finances on the side. 

As is the case with any personal finance product, it’s important to carefully assess your financial situation and capacity for repayment before taking on a personal loan.  

What regulations do lenders have to follow when offering me a personal loan? 

When lenders offer you personal loans, they’re required to follow a few different regulations set out by the Financial Conduct Authority to ensure you’re protected when borrowing, and they can effectively avert risk.  

Treating Customers Fairly 

This might seem like an obvious one, but lenders are legally required to ensure they treat all customers fairly throughout the loan application and repayment process. 

This includes things like providing clear and accurate information about the loan terms you’ll be bound to, outlining any costs comprehensively, and sharing the risks involved with borrowing. 

This also includes running checks on you which ensure you won’t have too much difficulty in meeting your repayment obligations. 

Responsible Lending 

Lenders are obligated by the FCA to conduct thorough affordability assessments before granting a personal loan. This is called ‘responsible lending’. 

They must assess details you provide surrounding your income, expenses, credit history, and other relevant factors. 

This ensures you won’t be plunged into unmanageable debt by the loan you take out. 

Transparent Disclosure 

Lenders must provide a transparent and comprehensive package of information about the loan you’re looking to take out with them. 

It should contain details of the interest rate you’ll be charged, any additional fees which might be relevant to you, and charges you’ll incur for mismanaging the loan.  

Lenders should always aim to present the details you need in a clear and understandable way. 

This helps to make sure that you’re fully aware of the costs and terms associated with the loan before you sign on the dotted line. 

Cooling-off Period 

Some personal loans might carry a cooling-off period. 

This means that you’ll have the right to cancel the loan agreement you’ve signed up to without being hit with any penalties or charges within a certain time frame.  

This cooling-off period gives you a great opportunity to reconsider your decision and exit the loan agreement if you think this is the right course of action to help you and your finances. 

What’s the bottom line? 

These regulations each aim to promote fair and responsible lending practices among lenders on the marketplace. 

They’re there to protect you from predatory behaviour and generally ensure that you’re fully informed about the terms and costs of personal loans you access.  

The FCA actively monitors and enforces lenders’ compliance with these regulations to promote a transparent lending environment for you to make the best of. 

Are there any alternatives to a personal loan? 



Credit Cards 

Revolving lines of personal credit allow you to make purchases on your credit card and repay the amount you’ve borrowed over time. Each month, the amount becomes available again meaning you don’t need to constantly apply for new credit. They are suitable for borrowing smaller amounts or addressing short-term financial needs, so if the £25,000 sum you require can be spread out over a number of months or years, a credit card may be a good option to pursue. 

Home Equity Loans 

Here’s one for the homeowners… If you have built-up equity in your property, home equity loans can provide you with a lump sum which is borrowed against the value of your home. These loans typically have lower interest rates than personal loans and can be drafted in to help you meet the cost of larger expenses like home improvements or debt consolidation. 

Peer-to-Peer Lending 

The internet has given us many great things, including online platforms which connect would-be borrowers directly with individual lenders who are willing to provide people with the loans they need. Peer-to-peer lending can offer competitive interest rates and terms in comparison to traditional borrowing, especially if you have a good credit score behind you. The lending process often involves a credit assessment before funds are disbursed. However, you’d have to undergo these for traditional lenders to lend you money too, so this option is worth exploring. 

Government Assistance 

Depending on your individual situation, you might qualify for government assistance programs or grants which can provide financial support without the need to bring in traditional loans. Before taking on a loan, it’s wise to research initiatives or benefits offered by government agencies or non-profit organisations which cater to your specific needs, be that education, housing, or giving your small business a boost. 

Negotiating Payment Plans 

If you're looking for additional loans because you’re facing financial hardship, it’s prudent to contact your existing lenders to discuss potential payment plans or alternative arrangements. Many lenders on the market are more than willing to work with you to establish more manageable repayment terms to avoid you falling into further, unnecessary debt. This can help avoid the need for taking on additional credit, saving you money on increased interest payments. 

Savings or Emergency Fund 

If at all possible, utilising your own savings or emergency fund can be a smart alternative to borrowing more money that you may not need. By using your existing cash, you’ll avoid incurring any hefty interest charges and the potential burden of debt repayment further down the line. 

How do I get better rates on a £25,000 loan? 

Unfortunately, sometimes the rates you’re offered on personal loan can be disappointing.  

This could be for several reasons, all of which can be mitigated by taking a few simple steps. 

To improve your chances of securing better interest rates on a £25,000 loan in the UK, there are a few fool proof strategies. 

Maintain a good credit score 

When you apply for a loan, lenders assess your creditworthiness when determining the interest rate you’ll need to pay on top of the principal sum of cash you borrow.  

A higher credit score will mean a lower credit risk threshold for the lender. This, in turn, will usually lead to more favourable interest rates.  

To keep that credit score high, pay your bills on time, keep your overall credit utilisation low, and review your credit report on a regular basis to remove any errors or discrepancies you find lurking around. 

Shop around and compare offers 

No two lenders are the same. 

Different lending institutions on the market might offer varying interest rates and terms for the same loan amount, even if your financial background is broadly the same each time you apply.  

To make sure you’re making the most out of what’s out there, be sure to take the time to research and compare loan options from various financial institutions you can identify. 

By considering both traditional and digital lenders, you can make sure you explore a wide range of choices. 

Consider secured loans 

If you have any valuable assets at hand, such as a car or a house, you might be eligible to take out one of the secured loans we mentioned earlier.  

Since secured loans provide collateral to the lender which offers them a layer of welcomed security, they often come with better rates compared to their unsecured counterparts.  

However, be cautious with this option - defaulting on payments could result in the loss of the secured asset. 

Improve your debt-to-income ratio 

As part of their multi-step process to protect both you and them, lenders evaluate your overall debt-to-income ratio. 

This sounds complicated, but it’s actually pretty simple: this ratio compares your monthly debt payments to your net income.  

Lowering your level of existing debt or increasing your income a bit can improve this ratio over time rather substantially, and potentially lead to you being able to secure much better interest rates on future loans. 

Opt for a shorter loan term 

If you can manage it, choosing a shorter loan term might result in a lower interest rate.  

While this will increase the sum of your monthly payments, it can save you a lot of money in the long run by reducing the total interest which you need to pay over the loan's duration. 

Consider a joint or guarantor loan 

If you have a trusted family member or friend on hand with a stronger credit profile than yours, you could weigh up the options of applying for the loan together or having them co-sign on it to give the lender a little bit of added security.  

Taking this simple action could potentially improve your chances of securing a better interest rate based on their superior level of creditworthiness. 

Provide a larger deposit  

If you’re using the loan you need for a specific purpose, like buying a car or carrying out a much-needed home improvement project, offering a larger deposit on your loan can reduce the sum of cash you need to actually borrow.  

A smaller loan amount may lead to more favourable interest rates being offered to you. 

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