Best personal loan rates
Whether you want to buy a new car, go on holiday or to consolidate debt you want to get the best personal loan rates you can. Loans like most financial products can vary greatly from lender to lender so it is wise to shop around before you take one out.
You can use the comparison calculator on this website to compare over 200 different loans from over 20 different lenders to see if you can find the best personal loan rates for you.
Personal loans, also known as 'unsecured loans' because you do not need to put up property as security on them, are usually available from £1,000 and up to amounts of £25,000 and can be repaid over veriable numbers of years. Lenders tend to offer better rates of interest with larges sums being borrowed, however you should not take out a loan you cannot afford the repayments on just because of this.
Lenders will advertise their personal loans with a Representative APR however this is not the amount you are guaranteed to get from taking out a loan with them. The actual interest rate you are offered may be influenced by your personal financial circumstances and history,this same criteria will also affect just how much a lender will be willing to loan you.
If you wish to borrow more than £25,000 then a homeowner or ‘secured’ loan may be an option for you. Unlike personal loans these require you to use an asset like your home or another property you own as security on the loan, meaning failure to make repayments could result in your home being reposed. Because of this added security on the loan lenders are sometimes willing to loan more than they would be with a personal loan.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. If you are at all unsure of the suitability of a particular product for your circumstances you should seek independent financial advice.
Things to consider
Aside from doing your research and making sure you are getting the best personal loan rates. Before taking out a loan you should think about any alternatives, such as if you have any savings it might be beneficial to use these instead, as the interest you pay on a loan may be higher than any interest you earn from your savings.
There are other types of borrowing than personal and home owner loans such as authorised overdrafts and credit cards you might wish to consider.
If you are thinking of taking out a loan to consolidate debt understand that spreading your payments over a longer term could mean you ultimately pay more overall than you would with your existing arrangements, even if the interest rate on the new loan is less than the rates you have at the moment.