Compare 2-year personal loans

Key features of a 2-year fixed-rate personal loan

• Borrow £1,000-£25,000. Each lender will have their own minimum and maximum amounts, which often vary according to the length of loan. The amount you’re able to borrow will also be subject to credit and affordability checks. Some lenders will let existing customers borrow up to £50,000 – again, this is subject to approval.
• Fixed monthly repayments. Signing up to a fixed-rate loan means you’ll know in advance exactly how much your loan is going to cost you. With this type of loan, each of your monthly repayments will be equal.
• Quick, personalised quotes. With just a few details about your circumstances, lenders can normally give you an instant personalised quote, telling you whether or not you’re likely to be approved and giving a more accurate estimate of the interest rate you’d be charged, the monthly repayment amount and the overall cost of the loan. This should not affect your credit rating.
• Simple application. No more waiting around at the bank or on the phone on hold – it’s possible to complete your entire application online from the comfort of your own home, in around 15-20 minutes (less if you don’t shop around, and simply opt for your current bank).
• Access funds in 1-3 days. Thanks to improving technology, once approved, some lenders are able to have your loan in your account within one or two days. Generally speaking, taking a loan from your existing bank will make this process quicker, but as you’d imagine, it usually pays to shop around.
• Late repayment charges. Missing your repayment dates could see you face a late repayment fee, and will damage your credit record, making it harder for you to secure credit in the future.
• Early repayments. It is normally possible to pay some or all of your loan off early at any point. However some lenders make this process easier than others. While almost all lenders state that there is no penalty for repaying early, that does not mean that doing so will save you money on interest. If you are hoping to try to clear your loan early, check the terms of any products you are considering, to see if early repayment will actually save you any money. A common policy amongst the big high street banks is to charge two months’ additional interest on any sums that are paid early.

It’s also worth noting that while “set-up”, “product” or “administration” fees are very rare these days for personal loans, you should still check whether or not the product you are considering comes with a fee.

Can I take out an extra loan?

Once your loan has begun, there are a few ways that lenders may let you borrow more, or borrow for longer. These will invariably have implications for the overall cost of the loan.

• Repayment holidays. This is a period of time (normally a month or two) offered by some lenders, where you’re not required to make repayments on your loan. This gives you financial “breathing room”, but means you’ll pay more in interest overall. If you take a two-month repayment holiday, for example, your loan will then last two years and two months, and will cost you more in interest.
• Top ups. “Topping-up” is increasing the amount borrowed, midway through a loan. Some lenders allow it, subject to approval, and some don’t. Many lenders will require that you close your original loan account and begin a new, larger loan. You may not keep your current rate, and you may incur charges.
• Extensions. Most lenders will not allow you to extend your loan, but as above, may allow you to close your current loan and begin a new, longer loan. Again, this will be subject to approval, you may not keep your current rate, and you may incur charges.
• Multiple loans. Each lender will have their own policy on running two or more loans concurrently. For some lenders it will be a flat “no” – insisting that you close your original loan and begin a new loan. Again, this will be subject to approval, you may not keep your current rate, and you may incur charges.