Looking for the best personal loan rates? We work with Monevo who have one of the biggest panel of direct lenders in the UK, so we are perfectly positioned to find and offer you the best personal loan rates available nationwide.

Learn everything you need to know about the interest rates of personal loans UK.

Learning Highlights
  • Finding best interest rates for personal loans
  • Are smaller loans cheaper?
  • Advertised personal loan rates aren’t for everyone
  • How to compare personal loans
  • Are credit unions an option?
  • APR and the true cost of personal loans

Best Personal Loans

Borrowing money through a personal loan is a good option, but it is important to look for the best rates for your circumstances. If you are trying to find the best rates for cheap personal loans UK, there are plenty of products on the market to choose from. But how do you know which one is the best for you? Best rates for personal loans can be found on money advice websites and through mainstream advertisements. Interest rates can change on an almost daily basis. Therefore, you need to make sure that the rate you are seeing is current and not one that has been withdrawn.

Personal Loans Best Rates

There are different types of interest rates applicable on loans. Using a personal loan with a fixed interest rate is often the best choice. This is because you can be sure that the monthly repayment amount will not rise during the term of the agreement.

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Best Rates For Different Personal Loans

Smaller Loans

If the amount you wish to borrow is below £1,000, you might be better off choosing a 0% credit card to raise the cash. But, this is only good advice if you are certain that you will pay off the full sum before the zero rate offer period has expired.

The best personal loan rates are on offer for applicants who wish to borrow between £3,000 and £7,500. Any lower or higher amount will usually attract a higher rate of interest. This is because these figures represent the most popular sums borrowed, and lenders want the most lucrative part of the loans market. Remember, each loan contract is different so no one can guarantee that you will be offered the best personal loan on the market. Shop around and you can find the best personal loan rates for your own individual circumstances. Personal Loans Now is an Introducer to Monevo, which means that they will search their lender panel for the best loan rates for you.

Larger Loans

A credit card account is unlikely to allow you to borrow more than £5,000. So, if the sum that you require is this or higher, a personal loan could fit the bill. Look at best buy tables and factor in all relevant circumstances. A good way of working out what you can afford is to use a personal loan calculator. Just enter in the relevant details about income, outgoings and current debts. In a few seconds, you will be able to work out what amount you can afford to borrow.

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Best Personal Loan Amount

How much should you borrow to get the best rates? Best buy personal loan interest rates that are advertised throughout the UK may change when you select a loan amount. The amount of money borrowed and the term of the loan are the important factors to consider. If the amount you want to borrow is just £1 below the threshold of a lower rate loan product, you can end up paying more for less. A good idea is to play around with a loans calculator. This will help you to work out if it is more beneficial to borrow the slightly higher amount. The personal loan cheapest interest rate is often only found after doing a lot of research using online loan calculators.

Best Rate Personal Loans

Who can get the best rate personal loans? Obviously, credit history is a critical factor (although Personal Loans Now has access to several lenders who do offer bad credit unsecured personal loans), but do other aspects make a difference too? Both the self employed and employed people are eligible for unsecured personal loans. However, the self employed might have to approach a specialist lender to get the best personal loan rates. Age limits also apply for unsecured personal loan applicants. The minimum age limit is 18 or 21 depending upon which lender you choose. The upper age limit is normally 65. Lenders rarely offer loans to anyone over the age of 70.

Best personal loan rates - Personal Loans Now

Personal Loan Rates

The interest rates charged on personal loans do vary greatly. However, personal loans with the best personal loan rates are always available due to the fierce competition between lenders. Over the last few years there has been a glut of products that have forced down interest rates. Compare best personal loan rates in the UK and you will find that rates appear to be very low. However, interest rates are not the only aspect of loans to look at. Often, there can be hidden costs to take into account.

Cheap Personal Loans

Many lenders will advertise cheap personal loan interest rates. However, unless you have a good credit rating the cheapest personal loans might not be available. Only 51% of loan applicants must be offered the representative interest rate that has been advertised. With a low credit rating, there is a good chance that you will be offered a higher rate when you apply. Taking a high acceptance direct lender guarantor loan can reduce the cost of the loan by a lot.

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How do I get the cheapest personal loan?

The cheapest personal loan with the cheapest personal loan rates will come from lenders taking the least risk by lending to you. So, if a guarantor signs that they will pay if you don’t, then the lender will offer you their most cheap interest personal loans. Alternatively, secured personal loans are generally far cheaper than unsecured loans, for the same reason. Therefore, a cheap secured homeowner loan will usually be a cheaper personal loan than an unsecured personal loan.

The Real Cost of a Low Interest Personal Loan

This is most important and should be the basis of your research before you take out a personal loan. Only when you have the final figure, including any fees and charges, will you be able to truly get the full picture of the amount that must be repaid. It is a simple matter to work out the total cost of a personal loan. All you need to do is use one of the many loan calculators that are found online.

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Read the small print

One very important point about taking a loan is to read the small print. Almost no one does. In the past, this led to some mis-selling of Payment Protection Insurance which was added to the repayments on loans.

Most people are now aware of this scandal. Consequently, lenders are now taking more care to ensure that customers are fully aware of the exact terms of a contract.

Personal Loan Rates UK

The rates for unsecured personal loans in the UK are now lower than ever. This is due to the competition among lenders. In the not too distant past, only banks and finance companies sold personal loans. Now, many other companies have entered the market. This has led to lower rates for unsecured personal loans.

Best personal loan rates - Personal Loans Now

You can use these new low interest rates to your advantage. If you want to pay off several debts, a low interest debt consolidation personal loan is a good opportunity to reduce the overall amount that you pay each month. As long as the total cost of the loan comes to less than the total cost of the multiple debts you already have and as long as the monthly repayment is lower, you will be saving money.

How can you find the cheapest personal loan rates?

The Internet is a great tool for finding excellent financial products with and there is a wealth of websites which offer the cheapest personal loans at the best personal loan rates. Of course, you may not be eligible for the best online loan rates that you see advertised. Still, going online remains one of the best methods of searching for the cheapest personal loan rates.

Compare Personal Loans Options

It’s important to compare your options, but remember: don’t just look at the personal loan interest rates. You should also look at the size of any arrangement fee and what other terms apply to the contract. For example, some agreements specify that the debt cannot be repaid early unless you pay a penalty. If you think that you may be in a position to repay the loan before the end of the term, then this is an important factor to consider.

Best personal loan rates - Personal Loans Now

One of the other most important factors to take into account is how much you want to borrow and for how long. Experts advise that you borrow the minimum that you need and pay the loan off as soon as possible. So, even if a lender offers a much higher amount and you are tempted to go for it, think ahead about how long you will be making the repayments. Going into long term debt is never a good course of action. So, even if you have personal loans to compare and find a good deal, it is always wise to think carefully before committing to a long term debt.

How do Personal Loans Compare to Other Options?

Personal loans are usually a great choice. However, if you find that you are not eligible for a personal loan because you have no credit history or a bad one, there are other options available.

Peer To Peer Lending

Peer to peer lending is the latest way to borrow money at low rates and this is an excellent choice if you only want to borrow a small amount. The way it works, is that Peer to peer lending matches those who want to borrow with lenders who want to lend. Lenders are usually people who have spare cash but are getting little or no return for lacing their money into a savings account.

The websites for peer to peer lending match those in need of a loan with a suitable lender and a rate is agreed. Most of these contracts are very flexible. That way, if you want to repay early, you may be able to do so without penalty. However, always look carefully at the small print before signing up to a deal.

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Credit Unions In The UK

If you fail to secure a successful application for a personal loan, you can try to borrow from a credit union. These are independently run organisations and they are there to help people who have no access to normal lending.

These organisations offer low sum loans at low interest rates. There are no fees added or penalties for making early repayment of the debt.

When You Get Into Debt:

At the end of the day a personal loan is a debt and it has to be repaid with interest. That is how the system works and for most people, it works very well. However, if something unexpected occurs and you find yourself unable to repay a loan, there are a number of organisations that can be of help. Citizens Advice is a good place to start. There are also a number of debt counselling charities where you can get help, information and advice about how to sort out your financial problems.

Best personal loan rates - personal loans now

Personal Loans Compare Tables

In addition to displaying the interest rates, personal loan compare rates tables should show whether the rate is fixed or variable. Although most loans are offered at a fixed rate, there are some variable rate products on the market. If you choose one of these products and interest rates start to rise, the monthly repayment will also go up.

Finally, interest rates may rise on a personal loan if there are missed or late payments. Lenders must write to you first, but are able to ask for a higher rate when circumstances change.

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Compare Personal Loans UK

The APR (Annual Percentage Rate) is used to compare loans in the UK. This is calculated using a compound interest formula. All personal loans have to state the interest rate as an APR. Using this as a guide, you can find cheap interest personal loans and then choose the right product. If you see a loan advertised at a monthly rate and try to compare it to one which has an APR, you will never be able to work out which one has the best personal loan rates.

APR and the Cost of Personal Loans

Unsecured personal loans are fully regulated financial products. As such, the lender is obliged to quote the APR when advertising the product. The APR is worked out not only using the sum borrowed over a certain term, but also including any arrangement fees or other charges that comprise best personal loan rates.

If you have been deemed a bad credit risk, you might be offered a personal APR which is higher than the advertised rate. You can work out the true cost of borrowing by looking at the sum borrowed, any fees and the rate of interest. Then, you will be able to see the total cost of the loan over the whole term. With Personal Loans Now, you will be able to see exact repayment when applying and in your loan contract.

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It’s all about the choice.

Choosing the right lender to approach for a personal loan is very important. And, choosing the right product even more so. With extremely low rates on offer for fixed rate loans there is little point in going for a variable rate product.

Look at all the pros and cos of each product before making your choice. Make sure that your budget can withstand the amount you are committing to repay each month. There are lots of reasons why people take out a personal loan at the best personal loan rates. Whether you want to pay for an expensive wedding or need a personal loan to finance your car, there are plenty of best rate and cheap personal loans available.

Best Personal Loan Rates

If you go for the first personal loan you see, you probably won’t be getting the best rates available. By looking at different types of loans and experimenting with various amounts in a loan calculator, you can ensure that you do get the best personal loan rates possible for your situation. Personal Loans Now works with a responsible and dedicated broker, and as such, we have access to a large range of direct lenders. We do our utmost to ensure that all our approved applicants receive the best interest rates possible.

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