Loan Comparison Calculator UK

A good APR for a UK personal loan in 2025 is typically 6-9% for borrowers with excellent credit scores (750+). The average APR across all borrowers is around 9-15%. High street banks offer their best customers rates of 5-8%, while online lenders typically range from 7-15% for good credit. APR above 20% is considered expensive and usually indicates you're borrowing with poor credit.

Representative APR is the rate that at least 51% of successful applicants will receive. This is required by FCA rules to help consumers compare loan offers fairly. The other 49% of approved applicants may receive a higher rate based on their individual credit profile. Always use eligibility checkers to see your personalised rate before formally applying.

Always compare total cost of borrowing, not just monthly payments. A longer loan term gives you lower monthly payments but costs more overall in interest. For example, borrowing £10,000 at 7% APR over 3 years costs £11,124 total (£309/month), but over 5 years costs £11,880 total (£198/month) - that's £756 more in interest for the same loan.

Include arrangement fees (typically £0-300), administration fees, and any mandatory insurance. The APR calculation includes most mandatory fees, but early repayment charges (typically 1-2 months' interest) are not included. Late payment fees (£12-35) aren't included either. If you might pay off early, factor in early repayment charges when comparing.

UK personal loans typically range from £1,000 to £25,000, with some lenders offering up to £50,000 for the best credit profiles. Most lenders cap borrowing at 4-5 times your monthly income. Your credit score, existing debts, income stability, and the lender's criteria all affect how much you can borrow. Secured loans may allow higher amounts but put your assets at risk.

A 3-year term means higher monthly payments but less total interest paid - choose this if you can afford higher payments and want to minimise total cost. A 5-year term has lower monthly payments but costs more overall in interest - choose this if your budget is tight and you need smaller monthly payments. Use our calculator to see the exact difference for your loan amount and rate.

Yes, but expect higher APR (typically 25-50% or more). Options include guarantor loans (where someone else guarantees repayment), credit union loans (often fairer rates for members), or secured loans (using an asset as security). Consider improving your credit score first by registering to vote, paying bills on time, and correcting any errors on your credit file with Experian, Equifax, or TransUnion.

A full loan application creates a 'hard search' on your credit file, which can temporarily lower your score by a few points. Multiple hard searches in a short time can have a bigger impact. However, eligibility checkers use 'soft searches' that don't affect your score at all. Always use eligibility checkers first to see your chances before making a full application.