If you’re looking for a personal loan maybe to cover the cost of a big ticket item or because you want to consolidate debt you already have you may have been wondering if Halifax personal loans are the right choice for you.
Halifax Personal loans key information:
- Borrow between £1,000 and £25,000
- Cannot be used for business purposes
- Repayment period between 12 and 84 months
- Interest rate is fixed for whole loan period
- Only available to existing customers
- No arrangement fees to set up
Although the maximum amount Halifax lends with a personal loan is listed as £25,000 the actual amount you may be able to borrow from them is dependent and a check of your credit rating and your personal financial circumstances, this will also affect the interest rate offered to you.
To be eligible for any Halifax Personal Loans you must:
- Be over 18 years old
- Not currently be in full time education
- Be in paid employment
- Not have any interest of bad credit such as County Court Judgements(CCJs) or defaults
Taking out a loan is a massive commitment as they usually take years to pay off, because of this it’s sensible to shop around first to find the very best deal for your situation. Loans like any other financial product can vary greatly between from plan to plan and lender to lender. This means that the best option for one person is not necessarily the best option for everyone else.
You can use the calculator on this website to compare over 200 different loans from over 20 different providers, to help you see what the different options for you are.
Homeowner Loan
Although not currently offered by Halifax, if you want to borrow a larger sum of money and you own your home applying to a lender for a Homeowner Loan might be a more suitable option for you. With homeowner loans you put your house or other property up as security on the loan. Because of this security on the loan lenders are generally more willing to offer you more, typically up to £250,000 pounds.
The actual amount you can borrow with a homeowner loan is affected by your credit score as well as the market value of your home and how much equity of it you have.
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.
Before you take out a loan
Before settling on a loan you should think about alternatives that may be more suited to your current situation, If you currently have any savings equal to how much you wish to borrow it might be more beneficial to use them instead. This is because it could be that the interest you earn on your savings is less than you would be paying in interest on a loan, and remember there are other types of lending such as authorised overdrafts you may want to consider.
If you want a loan to consolidate you should check if spreading your payments over a longer term might mean that you ultimately end up paying more than you would under your current arrangements, even if the interest rate on the new loan is lower than you are currently paying.