How to get a £50,000 personal loan with the best rate

If you’re looking to make major improvements to your home, consolidate large debts or fund a big-ticket purchase, a £50,000 loan could be just the trick. Provided you have a good credit rating and can afford the monthly repayments, it could be the easiest road to your dream purchase.

When borrowing such a substantial amount, it’s important to be aware how to get a deal with the best terms. Failing to do so could cost you thousands over the period of your loan.

Should you get a secured or unsecured loan?

When borrowing amounts as large as £50,000, you’ll almost definitely have to accept a ‘secured loan’. This means you’ll be accepted to agree for assets to be used as collateral against late or failed payments. More often than not, this collateral will be equity on your property. An ‘unsecured loan’ which involves no collateral, may be less risky for borrowers but they often come with a higher rate. There are few unsecured loans available on amounts over £25,000.

How to get a £50,000 loan

• Determine whether you can afford a £50,000 loan. There are plenty of calculators online that will reveal your monthly repayments on a £50,000 loan, based on the rate and the length of the term. Use this to determine what rate and term length you’d need to be able to manage your monthly repayments.
• Use a credit checking service. You’ll need a good credit score in order to be approved for a £50,000 loan. Companies such as Experian, Equifax and TransUnion (formerly Callcredit) provide a useful credit checking service that’ll let you know whether it’s worth applying for one. If your credit score doesn’t appear to be good enough, consider applying for a smaller loan or building your credit score and applying at a future date.
• Compare lenders online. Shop around and look for the best price for the amount you need.
• Apply. The easiest way to apply for a £50,000 loan is through the lender’s website. Fill in your personal and financial details, agree to a credit check and the result of your application will be made available within seconds.

£50,000 loans for specific circumstances

• £50,000 loans for bad credit. Although there are a growing amount of lenders that specialise in offering deals to applicants with bad credit scores, there are few offering loans for £50,000. These specialist companies charge higher rates than mainstream lenders, so getting a loan of this size from them would prove costly.
• £50,000 loans for businesses. A £50,000 loan for a business could help propel it to the next stage of success. It’s rare to be able to get one from a personal loan company though. More often than not, you’ll need to approach a business lender, provided you meet its unique eligibility criteria.
• £50,000 loans for the self-employed. If £50,000 loans are tough for the average employee to secure, they’re even more difficult for self-employed people. These individuals are seen as a higher risk for lenders because they’re income is less stable. Still, there are a few lenders that specialise in loans for self-employed people. For a loan of this size, this is their most likely chance of success.

How to compare £50,000 loans

• Eligibility. Lenders will usually minimum criteria for borrowers to meet to be eligible for a loan. For £50,000 loans, this could be tough to meet, so make sure you read this before applying.
• Rate. Take note of the ‘Representative APR’ on a loan, but also be aware that you might not be offered this rate. This figure is simply the rate that they must offer to at least 51% of customers. Applicants deemed to be less creditworthy than average could well be offered a higher rate.
• Total payable. This is the capital owed to your lender, plus your total interest charges over the term of the loan. Most lenders will make this clear, so it’s easy to compare deals.
• Term length. The amount of time you’ll be able to borrow the money for. The longer your term length, the lower your monthly repayments, although you’ll pay more overall due to interest charges lasting longer.
• Fees. Although these are rare, some lenders will charge one-off ‘set-up’ fees. Look out for these and take them into account when comparing deals.

Loan illustrations

Comparison of £50,000 unsecured loans

How much do you need to borrow? £

50000

How long do you need to borrow for?

7

years

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Name	Product	Total Payable	Monthly Repayment	Representative APR	Link
Hitachi Personal Finance Hitachi Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.2% p.a. (fixed). Representative APR 3.2% and total payable £10,493.64 in monthly repayments of £291.49.	Compare	loading Fetching your data...
NatWest Existing Customer Personal Loan (specific eligibility criteria apply)					Go to site View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.	Compare	loading Fetching your data...
Post Office Money® Personal Loan					Check eligibility View details	Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.	Compare	loading Fetching your data...
Royal Bank of Scotland Existing Customer Personal Loan (specific eligibility criteria apply)					Go to site View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.	Compare	loading Fetching your data...
AA Member Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.0% p.a. (fixed). Representative APR 3.0% and total payable £10,462.68 in monthly repayments of £290.63.	Compare	loading Fetching your data...
Zopa Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 5 years at a rate of 8.8% p.a. (fixed) with an application fee of £240.00. Representative APR 9.9% and total payable £12,602.87 in monthly repayments of £210.05.	Compare	loading Fetching your data...
Lloyds Bank Existing Customer Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.	Compare	loading Fetching your data...
Lending Works Personal Loan					Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 5.8% p.a. (fixed) with an application fee of £0.00. Representative APR 10.0% and total payable £11,543.40 in monthly repayments of £320.65.	Compare	loading Fetching your data...
M&S Bank Personal Loan					Go to site View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.	Compare	loading Fetching your data...

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Should I just remortgage?

Remortgaging is a popular strategy for homeowners to get hold of huge lump sums. This involves altering your mortgage deal and borrowing against the equity of your property. If you’ve got a lot of equity or can bag a low mortgage rate, this could prove more economical than a personal loan.

Full guide to remortgaging