Compare Personal Loans
In the UK there are many lenders offering personal loans, from high street banks and building societies to online banks and supermarkets. Lenders frequently alter the rates of interest they charge on loans so it pays to shop around and compare loans when you are looking to borrow money - doing so could could save you serious money over the term of the loan.
Our free loan comparison service enables you to read reviews and apply for loans online from the leading lenders to find the right personal loan for your circumstances. We have a comprehensive reviews section and useful comparison tables so that you can review personal loan key features at a glance. Just click on the appropriate link for more information.
Please note that while we endeavour to keep the information on this site as current and up to date as possible, we cannot guarantee that a lender has not altered one or more of the APRs or charges associated with a loan deal or changed its features, obligations or benefits. As with any financial arrangement, you should read the loan agreement fully before making any commitment to enter into the loan deal.
Loan Reviews:
Loanspage.co.uk Barclays Personal Loan
Types of loan
When choosing a personal loan it’s important to understand the different types of loan available and how they work.
Personal loans can be either secured or unsecured. It is important that you understand the difference between the two. If you are a home owner you can apply for a secured loan, using your home as security. This means that if you get into difficulties repaying the loan, the loan lender could repossess your home and sell it to get their money back. With an unsecured loan the lender cannot repossess your home if you fail to pay the loan. However, it is important to remember that you are legally obliged to pay back the loan as you agreed when you started it.
How they work
You borrow a fixed amount from the lender and usually repay it in fixed instalments over a set period of time - this period is known as the ‘term’. The interest you pay to the lender is also usually fixed. Rates for secured loans are typically lower than unsecured loans, but there could be extra fees, and you could be putting your home at risk. It’s important that you check with the lender whether there are any charges for early repayment of the loan. You should also check how much interest you will be expected to pay with your final payment and any other charges that may be due.
Types of personal loan lenders
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High street banks and building societies: If you are more comfortable with a familiar household name then it is likely that you will source a loan from a bank or building society. You might be attracted to the ability to pop into your local branch to discuss matters with your lender. However, high street banks and building societies tend to charge a little more interest than an online bank.
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Online banks: there are some dedicated online banks that do not have a high street presence. This means they tend to have lower overheads and costs, so they are able to charge lower rates of interest on personal loans. In view of this, most of the cheapest personal loans in the UK are offered by online banks. Being able to access your banking facilities online is obviously a very attractive option in view of the time and hassle it saves compared to visiting a local high street branch.
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Supermarkets, shops and post offices: UK supermarkets and post offices have for some time also offered their own financial products. Even motor breakdown service, the AA, offers cheap loans. This can be really useful since you can obtain good deals on loans.
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Borrowing and lending exchanges: Borrowing and lending exchanges cut out the middleman and unnecessary costs which means they are able to offer cheap personal loans. In essence, the exchanges enable people to lend and borrow from each other directly. The person lending and the person borrowing enter into a legally binding contract. The exchange is responsible for collection of the monthly repayments. If repayments are not paid on time the exchange will use the same recovery process that other lenders, such as high street banks, use. In addition, in order to reduce risk, the exchange will arrange any borrowing to be spread between dozens of borrowers and lenders so no one person is significantly exposed to a potential and substantial loss if a borrower defaults on their repayments.
