How to get a £60,000 loan with the best rate

It’s possible to get your hands on a £60,000 personal loan, but you’ll need to secure loans of this size against a property.

When applying for large loans, it’s especially crucial to have your finances in order. If you’ve got a healthy credit score and a decent amount of equity in your property, it will make the process much easier.

It’ll be hugely beneficial when it comes to finding the best available deal too. After all, even the smallest difference in interest rates can make a significant impact on the overall cost of a loan this size.

Below, we explore what you can do to boost your chances of being approved for a £60,000 loan as well as how to find the best deal.

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How do secured/homeowner loans work?

When borrowing a sum of £60,000 or more, your lender will insist the loan be “secured” against a property. This essentially means your lender has the right to repossess your property if you fall too far behind on loan repayments. In nearly every way, this type of loan works the same as a second mortgage, although there are no conveyancers needed.

The lender will need to research your finances and the property you’re hoping to secure the loan against. This process will begin with a telephone interview, followed by a formal offer, then a valuation of the property. Your lender will need to obtain permission from your mortgage provider to perform the valuation and finalise the loan.

You can expect this entire process to take around three weeks.

How should I compare lenders?

• Eligibility criteria. Most lenders publish their basic eligibility criteria online. You should check that you meet these before applying. You’ll definitely be rejected if you don’t meet these criteria and may still be rejected even if you do.
• Rate. Lenders will advertise a representative APR, the rate that has to be offered to at least 51% of customers. However, if you’re deemed to be a particularly risky applicant, you may be offered a higher rate than this.
• Term length. This is the number of months you’ll spend repaying the loan. Loans with longer terms will have lower monthly repayments, but it will cost you more overall due to additional interest charges.
• Fees. Some personal loan companies charge one-off set-up fees, although these are rare nowadays.
• Total payable. This is the amount of money you’ll pay over the entirety of the loan. This is the most important factor to consider.

Should I just remortgage?

You can get your hands on a lump sum of £60,000 by remortgaging to pocket some of the equity built in your property.

This is most likely to be more cost-effective than a personal loan when mortgage rates are low. To find the best deal, compare the total payable of a remortgage deal with that of your personal loan. For more information, see our guide on remortgaging.

£60,000 loan illustrations

Frequently asked questions

• Will I be asked what I'm using the loan for?

  Lenders will usually ask why you’re applying for a loan and use your answer to help evaluate your eligibility. If you’re planning to spend the money on a long-term investment, such as home improvements or debt consolidation, you’re more likely to be approved.

• How long can I expect the term to be?

  You can expect to be offered terms of at least 10 years, and some lenders may approve terms of 20 years or more.

• Can I use other assets for a secured loan?

  For smaller amounts, you may be able to use other assets. However, in most cases, you’ll have to use a property to secure a £60,000 loan.

• Can I get a £60,000 loan with bad credit?

  It’s more difficult to be approved for a large loan with bad credit. However, some specialist lenders may still consider you, especially when applying for a secured loan.