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Find out what loans you’re eligible for, without impacting your credit score

Find out what loans you’re eligible for, without impacting your credit score

Find out what loans you’re eligible for, without impacting your credit score

Find out what loans you’re eligible for, without impacting your credit score

Find out what loans you’re eligible for, without impacting your credit score

Prefer to see what type of loans are available?

You can still see our range of loans and apply for one, without checking your eligibility.

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What types of loan are available?

There are two main types of loan - personal loans (unsecured loans) and homeowner loans (secured loans):

Personal loan: Also known as an unsecured loan, the amount you can borrow is based on your personal circumstances, such as how much you earn and your monthly outgoings, as well as how good you’ve been at repaying debt in the past. Most financial providers offer unsecured loans up to £25,000 and repayments are usually spread over a fixed period of up to 10 years.

Homeowner loan: This is secured against your property, so you must be a homeowner (either own outright or have a mortgage) to be eligible. These loans can be up to 25 years and you can borrow up to £100,000. If you don’t keep up your repayments, the lender may be able to force you to sell your home to repay the debt.

What can I use my loan for?

You can use your loan for a range of purposes, from buying a car to making home improvements, to paying for your wedding.

Want to know more? Read about:

>> Repaying your loan over a long period

>> Paying your loan in monthly instalments

>> Using your home as security for your loan

How much does a loan cost?

Interest rates vary according to the size and duration of the loan

Longer durations may attract lower rates, but repayments will be made for longer

Borrowers with poor credit records will be charged higher rates

Anelda Knoesen

Money product expert

What our expert says...

"Borrowing is a normal part of life for millions of Brits – many of us need to borrow at some point to fund a major purchase, whether it be a new car or a new kitchen. Some of us will also choose to use a new loan to pay off several existing ones, bringing the debt into one place and making it easier to manage. It makes sense to shop around to find a great-value loan, and the crucial thing is to never borrow more than you can afford to pay back."

Frequently asked questions

What are the pros and cons of an unsecured loan?

Advantages:

  • You can get an unsecured loan without providing any collateral that the lender could take if you didn’t repay, such as your house.
  • Widely available from most financial providers – the application process is quick and easy.
  • Choice of repayment periods – there are options about how long you can take to repay the loan.
  • Fixed repayments – as interest rates are generally fixed, you’ll know what you need to pay back every month for the period of the loan, which helps with budgeting.

Disadvantages:

  • Requires a good credit history – as there’s no collateral, the bank needs to minimise its risk.
  • Interest rates can be high – to off-set the risks, banks tend to charge more for unsecured loans.
  • Early repayment charges – if you repay the loan early, you’ll probably have to pay a penalty.
  • Lenders have minimum loans – most banks won’t lend less than £1,000 or for less than a year, so it may not be suitable if you’re looking to borrow a small amount.

What are the pros and cons of a secured homeowner loan?

Advantages:

  • You can borrow more than with an unsecured loan - secured loans are available for up to £100,000. Secured loans typically start at £10,000.
  • Could be a good choice if you have a bad credit history, as your property acts as security.
  • Longer repayment periods are available and this can mean lower monthly repayments.

Disadvantages:

  • You could lose your home if you can’t keep up the repayments.
  • Early repayment penalties could increase the cost of borrowing.
  • Can have variable interest rates, which can land you in trouble if interest rates go up in the future and you can’t afford the higher monthly payments.
  • Potentially longer repayment periods – as you’re usually paying back over a longer time, your total costs over the whole period of the loan could be higher.
  • Arrangement fees can be expensive, so make sure you take this into account when weighing up the overall cost.

What do I need to compare loans?

It’s simple. We’ll show you available loans, once you enter:

• How much you want to borrow
• Over how long
• How much you can afford to pay each month

When you compare loans with us, we’ll show you details including:

• Provider
• Product
• Representative APR
• Total amount repayable  
• Monthly repayments 

Will searching for a loan affect my credit rating?

Searching for a loan won’t affect your credit rating. However, it’s worth noting that each time you apply for credit, a note is placed on your report saying that a business has reviewed it.

If you make several inquiries in a short period of time because your previous applications have been unsuccessful, it may be taken as an indication that you are in desperate need of a loan or that you’re taking on more debt than you can afford.

Why choose Compare the Market

See loans for your chosen amount in under a minute

See loans from a wide range of lenders

Loans available up to £100,000

What do I need to get a loan?

To apply for a loan, you need to meet certain requirements. This can vary from lender to lender, but generally, you’ll need to:

• Be 18 or above – for some lenders it may be 21 and some lenders also have upper age limits too

• Have a regular income (job or benefits)

• Be on the electoral register

• Have a functioning bank account

• Be able to afford the repayments.

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