If I decide I need a personal loan, which type of lender is best?

Banks, building societies and specialist finance companies all offer personal loans. None are any better than the others in any outright sense – but because the market is so competitive, you'll need to shop around.

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Different lenders have different preferences when deciding which borrowers to take on, that means that you might get a good deal off one lender, and a bad deal off another. For example, some specialise in offering homeowners with a good history loans, whereas others target those with debt and a bad credit history. Some lenders will not touch you at all if you don’t own any property.

As a borrower when you're comparing deals, it is essential that you compare like with like. The main point of comparison is the Annual Percentage Rate (APR). This can be a helpful starting point in determining the real interest rate you'll face over the term of the loan but you still need to treat this figure with care. For example, some lenders will include insurance on this figure and others won’t, so you need to be sure of these things before you can make an accurate comparison.

Hot Topics

What exactly is a personal loan?
A personal loan is a sum of money which you borrow. This could be from a bank, building society or another financial institution.
What is a Bridging Loan?
A bridging loan is designed to help you when you are selling your old home and buying a new one, because it is very difficult to get the timing right.
What do you accept as income?
When you apply for a loan you will have to state your regular income.
Will my monthly repayments ever change?
It depends on whether your loan is a fixed or variable interest rate loan, and over what period of time you are taking the loan.
Can I defer payment?
This depends entirely on the specific agreement you have made with the loan company – and you must read your terms and conditions carefully to see if you are entitled to defer your payments at any point.
If you want a great deal on a personal loan and want to save time shopping around, ask us now for a quote.

 

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Risk Warning
Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. Security by way of a charge on your home may be required.
Think carefully before securing other debts to your home.