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

Compare £50,000 unsecured loans

Use our table below to compare £50,000 loans from a range of popular unsecured lenders. However, keep in mind that most lenders will not let you borrow £50,000 on an unsecured loan unless you’re already an existing customer and have an excellent credit rating. You may find that a secured loan is a better option.

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
Barclays Bank Existing Premier Account Customer Barclayloan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 4.3% p.a. (fixed). Representative APR 4.3% and total payable £10,663.20 in monthly repayments of £296.20.	Compare	loading Fetching your data...
Royal Bank of Scotland Existing Customer Personal Loan (specific eligibility criteria apply)					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...
Barclays Bank Existing Current Account Customer Barclayloan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 7.9% p.a. (fixed). Representative APR 7.9% and total payable £11,219.04 in monthly repayments of £311.64.	Compare	loading Fetching your data...
TSB Existing Current Account Customer Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 2.8% p.a. (fixed). Representative APR 2.8% and total payable £10,431.72 in monthly repayments of £289.77.	Compare	loading Fetching your data...
NatWest Existing Customer Personal Loan (specific eligibility criteria apply)					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...
first direct Existing Customer Personal Loan					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.3% p.a. (fixed). Representative APR 3.3% and total payable £10,509.12 in monthly repayments of £291.92.	Compare	loading Fetching your data...
HSBC Premier Customer Personal Loan Finder Award					View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £10,478.16 in monthly repayments of £291.06.	Compare	loading Fetching your data...
Ulster Bank Existing Customer Personal Loan					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...

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If you’re looking to make major improvements to your home, consolidate large debts or fund a big-ticket purchase, a £50,000 personal loan could be just the trick. But 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 duration of your loan.

What can I use a £50,000 loan for?

You can get a £50,000 loan for any worthwhile purpose, but popular reasons for a loan include:

• £50,000 loan for home improvements
• £50,000 loan to buy a car
• £50,000 loan for small business
• £50,000 loan for land purchase
• £50,000 loan for students

Should I get a secured or unsecured loan?

When borrowing amounts as large as £50,000, you’ll almost certainly have to opt for a “secured loan”. With a secured loan you agree for an asset to be used as collateral against late or failed payments. More often than not, this collateral will be the equity in your property. As such these loans are often referred to as “homeowner loans” or “second-charge mortgages”.

Many lenders cap “unsecured” lending (which involves no collateral) at £25,000, but some big banks can offer up to £50,000. As these loans are more risky for lenders, they typically come with a higher rate and very strict eligibility criteria. If your credit file isn’t spotless, it’ll be extremely difficult to get approved and if you do get approved, the interest rate you’re offered might not be the most competitive. Additionally, it’s generally a requirement that you’re an existing customer of the bank – and ideally your relationship with the bank would go back a few years.

How much are monthly payments on a £50,000 loan?

The amount you repay each month on a £50k loan will depend on both the length of your loan term and the interest rate you are charged. Compare the monthly payments for £50,000 personal loans using our table below.

What’s the overall cost of a £50,000 loan?

The loan illustrations above use approximate, rounded figures, based on a flat interest rate. Longer-term secured loans are likely to have variable interest rates. If the rate goes down during the course of the loan, the monthly and overall costs would decrease. If the rate rises during the course of the loan, the monthly and overall costs would increase. Current interest rates are low compared to historical averages.

Are there any fees on a £50,000 loan?

When taking out a £50,000 secured loan, you may need to pay a number of fees, such as a lender’s fee or application fee, but this will depend on your specific lender or broker, and the nature of your loan.

You’ll also likely need to pay appraisal fee, which covers the cost of the valuation that is done on your home to determine its value.

How much income do I need for a £50,000 personal loan?

The minimum income requirements will vary depending on factors like the term of loan that you opt for. All lenders must be able to demonstrate that they are lending responsibly. In other words, they have been careful to make sure that you’d be able to afford the proposed repayment schedule, taking into account your income and outgoings. For example, if you’re an applicant with a £35,000 salary but relatively low regular financial commitments, you might actually stand a better chance than an applicant with a £50,000 salary and exorbitant monthly outgoings.

Ultimately your income is just one important part of the picture a lender will use to assess your case.

Loan companies might specify a minimum income requirement in their basic lending criteria (example below), but meeting these entry-level criteria means that your application can be assessed for approval, not that approval is guaranteed.

What credit score do I need for a £50,000 loan?

If you’re applying for an unsecured personal loan of £50,000, it’s very likely that you will need an excellent credit score. Different credit reference agencies use different scoring systems, but for Experian an Excellent score is 961 or higher. For Equifax, it’s 811 or higher and for TransUnion, 628 or higher. However, your credit score is just one factor on which your application will be assessed.

If your credit rating is not excellent, you may opt to use the equity in your home as security. In this situation, your credit score becomes a less crucial factor – but still a factor. The importance given to your credit score will vary from lender to lender, with some lenders specifically aiming to serve those with bad credit.

How long does it take to get a £50,000 personal loan?

If you’re in the minority of people that can get approved for an unsecured loan of this size, then it could theoretically be in your account the same day. Realistically, larger loans are likely to get a bit more focus from actual human underwriters (that’s the people who stand between you and getting your loan) which can mean the process takes a couple of working days.

Secured loans more commonly take two to three weeks to arrange and draw down. Although there aren’t solicitors involved, a property valuation of some form will be required and the bank holding the first charge over the property will also need to give its approval.

These extra steps make secured loans a little slower, but the trade-off for many is access to lower rates and/or larger sums.

How long does it take to pay off a £50,000 personal loan?

You can adjust your loan term in order to make your monthly repayments more affordable. Similarly, you can increase your monthly repayment in order to clear the loan in less time. As a general rule of thumb, spreading repayment over a longer timeframe normally makes for lower monthly repayments (but a higher overall cost). So it really depends on what you can afford to repay each month.

At a fixed annual rate of 5.5%, a £50,000 loan would take a little over 11 years to repay if your monthly repayment was £500. If you wanted to keep the monthly costs down, and paid £400 each month, it would take around 15.5 years.

Can I pay off a £50,000 loan early?

Yes, most lenders will let you repay your £50,000 loan early, but you’ll generally need to pay an early settlement fee to do so. This fee will depend on the size of your loan, as well as how much you have remaining to pay off. Some lenders may also charge an additional fee for breaking the terms of your loan.

Can I get a £50,000 personal loan?

Here are some of the key factors that will matter to a lender weighing up the risk of lending to you:

• The amount of equity in your home (if you’re applying for a homeowner loan). This is how much of the property you actually own, i.e. the current market value of the property minus whatever is still owing to your mortgage provider. The loan-to-value ratio (LTV) is another aspect to this – it’s how much you’re asking to borrow vs the total value.
• Your regular income and outgoings (and those of any co-signatories, if it’s a joint application). This is crucial when determining whether or not the monthly repayments would be affordable for you. Lenders will want to know what debt you’re currently carrying and how much that’s costing you each month. If your reason for seeking a new loan is debt consolidation, then naturally this will be taken into account. Lenders will also consider the source of your income and how stable it is.
• Your credit history. This is a file kept by credit reference agencies which records your borrowing history. Lenders will be hoping to see that you have a history of using credit responsibly. CCJs are also logged in your credit report.
• What you want the money for – i.e. the loan purpose. Lenders are pretty open-minded when it comes to the loan purpose, but may have a defined list of acceptable purposes or a defined list of unacceptable purposes.
• Some routine eligibility criteria like UK residency (some lenders will specify that you must have been a UK resident for a specific amount of time) and your age (both minimum and maximum).

£50,000 personal loans for specific circumstances

• £50,000 loans for bad credit. Although there are a growing amount of specialist lenders carving out a niche offering unsecured deals to applicants with bad credit scores, there are none offering amounts as high as £50,000. Specialist loan companies tend to charge higher rates than mainstream lenders, so getting a loan of this size from one would be extremely costly in any case. However, if you’re a homeowner with a mortgage then you can apply to secure a loan against the equity in your property to boost your chance of approval and/or to obtain a lower rate.
• £50,000 loans for businesses. A £50,000 personal loan for a business could help propel it to the next stage of success. You’re often not allowed to use a personal loan for business purposes though. You’ll want to compare dedicated £50,000 business loans which are available from both mainstream banks and business-focused lenders.
• £50,000 loans for the self-employed. Realistically, getting a £50,000 loan can be slightly harder for self-employed people. These individuals are seen as a higher risk for lenders because their income is perceived to be less stable. Still, there are lenders that specialise in homeowner loans for self-employed people. Expect to be asked for a little extra documentation – typically two years’ worth of accounts, SA302s/tax calculations, HMRC tax overview statements and possibly a reference from your accountant as well.

How to get a £50,000 personal loan

1. Work out your budget. Our calculator can help you get an idea of how long a term you’d need to spread the loan over in order to get manageable monthly repayments. As a general rule of thumb, you should aim to clear the loan in as short a time as possible, while ensuring the monthly repayments are affordable. Loans with longer terms tend to come with a variable interest rate (although some secured loans offer an introductory fixed-rate period), so it’s sensible to leave yourself a bit of leeway so that if rates rise, you’ll be able to take it in your stride.
2. Get to know your credit record. Knowing your credit score is helpful for understanding what options are available to you. For many lenders, you’ll need a good credit score in order to be approved for a £50,000 personal loan. Companies such as Experian, Equifax and TransUnion (formerly Callcredit) provide a useful credit checking service that’ll let you know how you’re tracking. If your credit score doesn’t appear to be good enough, consider applying for a smaller loan, securing the loan or building your credit score first and applying at a future date.
3. Shop around or – better still – consider a broker/loan-matching service. It’s generally a bad idea to simply go straight to one lender and apply. You should always compare multiple lenders online and look for the best price for the amount you need. For a loan as big as £50,000 even a slightly better rate can translate into thousands of pounds saved. A decent broker or loan-matching service can take your details and check your eligibility against products from multiple lenders in one go – saving you a lot of time (and hopefully money too). A number of lenders (such as Masthaven) actually only offer their loans through brokers.
4. Apply. The easiest way to apply for a £50,000 personal loan is through the lender’s website. You’ll fill in your personal and financial details (or the broker will simply pass these along), agree to a credit check and the indicative result of your application will usually be made available within seconds. Bear in mind that you should only ever formally apply for credit when you’re pretty confident that you’ll get approved (lenders and brokers can help you to establish this beforehand). Each application for credit usually involves a search of your credit file, which causes a small (and usually short-lived) negative effect on your credit score.

What are the alternatives to a £50,000 secured loan?

Unfortunately, you’re unlikely to find a lender that’s willing to lend you £50,000 on an unsecured personal loan, so a secured loan is likely to be your best option when it comes to getting a loan of that size.

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

Frequently asked questions

• Is it possible to get a £50,000 loan with no credit check?

  No, most lenders will perform some form of credit check when you apply for a £50,000 loan. However, it’s still possible to get a loan of that size if you have bad credit and some lenders specialise in arranging loans for those with poor credit history.

• Can I get a £50,000 loan in one day?

  It’s possible to get approved and funded for a £50,000 loan on the same day, but most lenders will generally take anywhere from a couple of days to a few weeks to transfer your money on larger loan amounts like £50,000. You’re unlikely to be able to find an instant £50,000 loan.

• What term can I borrow a £50,000 loan over?

  You can generally get a £50,000 loan with a loan term of anywhere from 10 to 30 years, but many £50,000 loans are offered over 10 years, 15 years or 20 years.