TSB Car Loan
Compare TSB car loans
If you are planning to buy a new car, or want to refinance to pay off an existing car finance deal, a TSB car loan may be an attractive option. TSB are currently offering interest rates from as low as 3.2% APR making this a potentially very affordable way to borrow.
TSB’s car loans are offered as unsecured personal loans. This means you do not have to put up any collateral in order to qualify for a TSB car loan. The exact interest rate you are offered will depend on your personal circumstances, credit score, how much you want to borrow and how long you want to repay over.
If you are considering taking out a TSB car loan, there are several key details of which you should be aware.
Benefits of TSB car loans
A TSB personal unsecured car loan offers the following benefits:
- Borrow from £1,000 to £25,000
- Repay over 1-7 years
- Fixed monthly repayments
- APR from as low as 3.2%
- Get a personalised quote without affecting your credit rating
- Receive the money straightaway (for TSB current account holders)
- Take 2 repayment holidays per year
Restrictions on TSB car loans
Before applying for a TSB car loan, you need to be aware that:
- You must be at least 18 years old
- You must be a UK resident
- You must be employed for at least 16 hours per week or retired with a pension
- The exact APR you are offered will vary depending on several factors
- You may have to pay up to 58 days’ interest if you later wish to pay off your loan early
- Failing to keep up your repayments can damage your credit score
- Defaulting on your loan may result in your account being passed to a county court-appointed bailiff to recover the debt
Alternatives to TSB car loans
If you need to borrow more than £25,000 and own your own home, you may be better off looking at a secured loan. This allows you to leverage your house to borrow more over a longer period and can often result in more attractive interest rates, although this depends on a number of variables.
How much you can borrow and the sort of interest rate you are likely to get will depend on your loan-to-value (LTV) ratio. This is calculated based on the total amount you wish to borrow against your home (including existing debt, such as a mortgage) relative to the property’s market value. The lower your LTV, the better interest rate you are likely to get.
If you do decide to take out a secured loan, remember that failing to keep up with your repayments could put your home at risk. If you default on your debt, you may have to sell the property to clear the outstanding balance.
Get the best rates on car loans
TSB are just one of a wide range of lenders offering car loans. To make sure you are getting the best possible deal on your car finance, take a look at our car loan calculator at the top of the page. This will allow you to quickly and easily compare car loans from across the market to find the best deal for you.