Compare £2,000 loans

If your cash flow is more ebbing than flowing, then a £2,000 loan may be just the thing to tide you over. There are all sorts of reasons why an affordable personal loan might be just what you need.

If your cash flow is more ebbing than flowing, then a £2,000 loan may be just the thing to tide you over. There are all sorts of reasons why an affordable personal loan might be just what you need.

Anelda Knoesen
From the Money team
minute read
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Posted 21 NOVEMBER 2019

Is a £2,000 loan right for me?

Maybe you have to make some urgent car repairs, or you need to carry out a spot of home improvements. Or perhaps you’re being financially savvy and planning to use a £2,000 loan to consolidate your existing debts into one.

Whatever your reasons, you want to make sure a loan for £2,000 is really what you want and put a solid repayment plan in place to pay it back. 

How long will it take to repay a £2,000 loan?

While it might seem attractive to drive down your monthly repayments by stretching your loan out into the future, you can end up paying quite a bit more in the long run when all the interest adds up. 

Here’s an example of a typical loan over 1-2 years:

Initial loan Time APR Monthly repayments Total repayments
£2,000 12 months 9.9% £175 £2,104
£2,000 24 months 9.9% £92 £2,203

The golden rule is to borrow as little as possible and pay it back as quickly as possible. Always base your loan on an amount you can easily afford to repay – this will save you money and time in the long run. Keep an eye on your proposed timeline too.

What types of loans are there?

Make sure you get the right loan for your needs by finding out what options to look out for before comparing quotes. A £2,000 loan is small enough that if you are buying something, you might consider whether a 0% interest credit card could suit you.  You'll need to be able to afford to pay it off during the interest-free period. If you prefer a loan then consider these options.

  • Personal unsecured loans are for a fixed amount and term, and monthly repayments are usually fixed. They are not secured against an asset, such as your home, but normally charge a higher rate of interest than secured loans. 
  • Homebuyer secured loans are secured against your property, (owned or mortgaged). These loans tend to have lower interest rates, but your home is at risk if you can’t make the repayments. Don't forget, these may have arrangement fees that will add to the total cost of the loan.
  • Guarantor loans – this where someone guarantees your loan and promises to pay the debt if you can’t.  
  • Payday loans can provide a short-term solution to cash shortfalls. They’re unsecured loans, meaning no collateral is required to get one, but have very high rates of interest. We don’t offer this type of loan on our site. You’d typically use a payday loan to bridge the gap between the time you run out of money, to the time you get paid again.
  • Installment loans – these are repaid over a long period of time, so you get a better interest rate. They are typically for larger amounts than payday loans. If you need a £2,000 loan with flexible terms, and you’re unable to pay the loan off straight away, you may prefer an installment loan.   

It’s important you work out exactly how much you can afford to pay back each month before you take out your £2,000 loan. Missing repayments can damage your credit score and you risk being taken to court.  

Will I get the ‘representative APR rate’?

Not necessarily. In fact, only 51% of successful loan applicants get the advertised rate. The actual rate you receive depends on your individual circumstances and credit history.

Learn more about APR and why it matters

A loan application will show on your credit report, meaning lenders can see that you applied for credit. If you make too many applications in a short time it could damage your credit rating, as lenders may think you’re in financial difficulties. So, it’s worth trying to make sure you think you’ll be approved before applying. 

Compare loans - the easy way

Trying to find the right loan can be a real challenge. Luckily, our comparison service is here to make it as simple as possible by allowing you to easily see all the relevant loans for you. You can also see what any age limits are and if the lender will allow debt consolidation loans, So, get going and see how much you could save.

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