Are long-term loans cheaper?
Lower monthly repayments do not always equate to long-term finance being cheaper. You could end up paying more interest than you would under a short-term agreement. Whether this additional interest is justified depends on your circumstances. If you can afford the higher repayments, a short-term loan could be preferable.
It’s worth noting that some long-term lenders could actually charge you for early repayment. This is not always the case but it is another reason to consider short-term lending. To avoid this, compare lenders who won’t charge you for settling earlier than scheduled.
What are the benefits of a long-term loan?
You may need to take out a loan for vehicle or home repairs. Perhaps you just need a holiday. Whatever your reason, there are a multitude of reasons to opt for long-term loans online. Some of the benefits include:
- Flexibility. You can find long-term loans ranging between hundreds to tens of thousands of pounds. You can also choose a loan term which you are comfortable with
- They could have a lower APR than short-term loans. Payday lenders, for example, can have interest rates exceeding 1,000%
- Long-term loans can resolve emergencies, where you need money urgently. They can also be used as a way of preserving your savings. By paying an affordable, monthly amount, you may be able to keep saving
If you can afford the repayments, the advantages of a long-term loan can be plentiful. As with any other borrowing, however, it is vital that you’re careful. Decide whether borrowing is the right option for you. Consider alternative funding if possible. If you do opt for a long-term loan, make sure you can fully understand the terms and can afford the repayments.
How can I find a long-term loan?
You can compare a vast number of long-term loans online with our comparison service. With just a few clicks, you can find the long-term loan that is right for you.