Compare 10-year loans

What is a 10-year loan?

A 10-year loan is any personal loan, either secured or unsecured, that has a loan term of 10 years. However, it’s rare to get an unsecured loan with a term of 10 years, and most are only offered over 1-7 years.

This means that 10-year loans are likely to be secured loans, which are a type of personal loan that requires you to use the equity you own in your house as security against the loan amount.

How do 10-year loans work?

If you take out a personal loan with a 10-year loan term, you’ll receive the loan amount upfront, and will then pay off this sum, and any interest, over 10 years’ worth of monthly repayments.

If you have a loan with a fixed rate, the size of your monthly repayments will remain the same over the 10-year period. If you get a loan with a variable rate, the size of your repayments could change over the course of the loan.

As almost all 10-year loans are secured, you’ll probably need to be a homeowner to qualify for the loan, and willing to use your home (or another asset) as a guarantee against the cost of the loan.

Pros and cons

What are the typical rates on loans over 10-year terms?

10-year loan rates can generally range from 3.5% to more than 20%, depending on the type of loan you apply for. The larger the loan amount and the longer the loan term, the lower your rate is likely to be.

As a general rule of thumb, secured loans also generally offer lower rates than unsecured loans, but the rate you receive will also vary based on the size of the loan, as well as your own personal circumstances and financial situation.

You can compare the typical cost of personal loan rates over 10 years below:

Can I get a 10-year loan?

Yes, you may be able to get a 10-year loan, but you’ll probably need to be a homeowner, and willing to use your home as security, to get a loan with a term of 10 years. While some lenders may offer unsecured loans over 10 years, you’ll likely need to be an existing customer with excellent credit to qualify for a 10-year unsecured personal loan.

Can I get a 10-year loan with bad credit?

Yes, you could still qualify for a 10-year loan even if you have poor credit, as long as you’re a homeowner and willing to take out a secured loan. However, you’re likely to receive much less favourable rates than someone with a good history, and may also be limited in how much you can borrow.

How to apply for personal loans over 10-year terms

To be eligible you’ll need to meet the following criteria:

• Be at least 18 years old
• Be a UK resident
• Have a UK bank account

As most 10-year loans require you to use security against the cost of the loan, you’ll also probably need to be a homeowner to be eligible. You’ll then need to contact a secured loan lender or broker, who can guide you through the application process.

When you apply, you’ll also need to provide the following information:

• Your name and address
• Proof of income
• Proof of employment

What can I use a 10-year loan for?

You can use a loan for any worthwhile purpose, and this includes:

• Home improvements
• Holidays
• Weddings
• Cars
• Personal expenses

Frequently asked questions

• How long will it take to get a 10-year loan?

  This depends on your specific situation, as well as the lender you use. If you manage to find an unsecured 10-year loan, you may be able to get approved and funded within a couple of days. If you’re applying for a secured 10-year loan, the application process is more likely to take 2-3 weeks altogether.

• How much can I borrow with a 10-year loan?

  If you’re taking out a secured 10-year loan, you may be able to borrow anywhere from £5,000 to £500,000, depending on the lender and the value of your home.

• Can I pay off a 10-year loan early?

  Yes, most lenders will let you pay off your loan before the end of the loan term. However, you may need to pay an early settlement fee to do so.

• Are there any additional fees on a 10-year loan?

  Yes, there could be additional fees when you take out a loan, but this will vary by lender. If you opt for a secured loan, you may need to pay a valuation fee to cover the cost of evaluating your home.