How to get an £80,000 personal loan

You can get an £80,000 personal loan, but you'll need to be a homeowner who can secure their property against the loan first.

The UK's largest range of secured loans

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Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.
£
yrs
£
£
Name Product Maximum LTV Loan amounts Loan terms Overall cost for comparison Repayments
Shawbrook Variable Secured Loan
65%
£10,000 to £500,000
3 to 25 years
4.5% APRC
£861.48
(£103,377.74 overall)
Shawbrook Fixed Secured Loan
65%
£10,000 to £500,000
3 to 25 years
4.7% APRC
£869.56
(£104,347.49 overall)
Norton Fast Track Secured Loan
75%
£3,000 to £100,000
1 to 25 years
12% APRC
£1,107.99
(£132,958.32 overall)
Equifinance Standard Secured Loan
60%
£10,000 to £250,000
3 to 25 years
7% APRC
£956.42
(£114,770.16 overall)
Equifinance Adverse Secured Loan
60%
£5,000 to £150,000
3 to 25 years
9.6% APRC
£1,049.21
(£125,905.68 overall)
Together Secured Loan
70%
£50,000 to £100,000
4 to 30 years
8.1% APRC
£984.05
(£118,085.62 overall)
Clearly Loans Exclusive Secured Loan
75%
£5,000 to £100,000
4 to 20 years
10.7% APRC
£1,057.63
(£126,915.84 overall)
Clearly Loans Exclusive High LTV Secured Loan
80%
£5,000 to £100,000
4 to 20 years
11.6% APRC
£1,091.99
(£131,038.32 overall)
United Trust Bank Ltd Secured Loan
65%
£10,000 to £125,000
3 to 30 years
5.4% APRC
£878.78
(£105,453.11 overall)
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Compare up to 4 providers

Overall representative example
If you borrowed £46,000 over a 15-year term at 8.40% p.a. (variable), you would make 180 monthly payments of £499.13 and pay £89,843.40 overall, which includes interest of £38,853.40, a broker fee of £3,995 and a lender fee of £995. The overall cost for comparison is 10.7% APRC representative.

Can I get an £80,000 loan?

An £80,000 personal loan might sound like an incredible amount to borrow, but there are lenders who frequently offer such loans, under specific circumstances. You’ll only be able to borrow this amount with a loan secured against a property you own. The lender will be able to repossess your home if you fall too far behind on repayments.

Your ability to be approved for an £80,000 loan will largely depend on your income/outgoings, the amount of equity you’ve built up in your property, your credit profile, and some basic eligibility criteria like age, residency and employment status. Lenders will check your bank statements and employment information to ensure you can comfortably afford the monthly repayments, so a consistent income and low amounts of existing debt will help your case.

What can I use an £80,000 loan for?

You can use an £80,000 loan for a range of purposes, including:

  • Bridging loan. This type of loan “bridges” the gap for homeowners looking to buy a new home without having sold their existing home or who otherwise need to cover a property purchase without a mortgage.
  • Business loan. If you own a business you could take out a loan to cover business expenses and costs, such as the purchase of new equipment.
  • Land loan. A land loan can be used to cover the cost of land that you want to develop or where you’re ineligible for a mortgage.
  • Home improvements. A secured loan can be used to cover the cost of improvements you want to make to your home.
  • Debt consolidation. If you have large existing debts, you could take out a loan to pay them off and consolidate them into one debt.

What would the payments be on an £80,000 loan?

The size of loan payments will depend on the interest rate you receive and the length of your loan. For example, an £80,000 loan with a 10-year term and fixed 7% rate could have monthly payments of £928.27, while an £80k loan with a 20-year term and 9% annual rate will cost £719.78 each month. You can calculate your loan costs here.

4% p.a. interest7% p.a. interest10% p.a. interest
8-year loan£975£1,091£1,214
10-year loan£810£929£1,057
12-year loan£700£823£956
15-year loan£592£719£860
20-year loan£485£620£772
25-year loan£422£565£727

How much does an £80,000 loan cost overall?

3% p.a. interest5% p.a. interest8% p.a. interest
8 years£90,083£97,228£108,570
10 years£92,698£101,823£116,474
12 years£95,361£106,547£124,699
15 years£99,444£113,874£137,614
20 years£106,483£126,712£160,596
25 years£113,811£140,302£185,236

How do secured homeowner loans work?

A personal loan secured against your property works very similarly to a second mortgage, although there are no conveyancers involved. To approve your loan, the lender will need to conduct an evaluation of your finances and the property you’re using as collateral.

After you’ve applied for the loan, the lender will typically conduct a telephone interview to get a better idea of your financial situation.

If you meet the lending criteria, you’ll be issued a formal offer, subject to a valuation of your property. The valuation will usually require an official property inspection and you may need to get permission from your mortgage lender.

If all is well and good, you can expect the money to be transferred into your bank account shortly after. The entire application process typically takes around three weeks to complete.

How do I compare lenders?

It’s worth taking your time to compare all the personal loan offers across the market using a comparison website.

When you’re borrowing an amount as significant as £80,000 over a long period of time, the slightest improvement in interest could make a significant difference to your bank account.

The advertised interest rate is not all you need to think about, though. Here’s a full list of factors to consider:

  • Lending criteria. A lender will usually publish its basic eligibility criteria online. You may also find criteria for specific loans. This could include details of expected minimum income, employment type or minimum equity in your property, among other things. Check to see if you meet these criteria before applying for a loan.
  • Rate. The loan’s “representative APR” will be advertised. This is the rate that has to be offered to at least 51% of customers. If you’re deemed a particularly risky applicant, you may be offered a rate that’s higher than this.
  • Term length. This is the number of months you’ll spend repaying the loan. A loan with a longer term may have lower monthly repayments, but you’ll pay more overall due to extra interest charges.
  • Arrangement fees. Some personal loans include one-off fees paid at the start of the term, although this is rare nowadays.
  • Total payable. The total amount paid over the term of the loan. This is the most important factor to consider.

Should I just remortgage?

If you’re a homeowner (with or without a mortgage) and you’ve built up more than £80,000 of equity in your property, then you should also consider remortgaging. The process typically takes around 4-8 weeks.

Much like a secured loan, remortgaging is likely to involve sizeable fees, although they are typically lower. These can usually be bundled in with the loan. A remortgage may work out more cost-effective than a personal loan, especially with current mortgage rates low across the board.

For many, the prospect of a single mortgage secured against their home will appeal. However, deciding which option is right for you can get fiddly and will probably require a calculator!

Banks reserve their best interest rates for low-LTV (that’s your loan-to-value ratio) applications. So if you currently have a £90,000 mortgage outstanding on a £200,000 house, then you have an attractively low LTV of 45%. Your bank probably loves customers like you, and so you might be enjoying a low rate of, say, 1%. But add £80,000 additional borrowing on top of this, and your LTV rises to 85%. An 85% LTV is riskier for a lender, and as such it would likely offer you a higher interest rate across your whole mortgage balance – not just the additional £80,000 borrowing.

Similarly, if your credit score has taken any knocks since you bagged a favourable mortgage rate, or if interest rates generally have risen, then you may find that you’re now being offered only higher rates than you’re used to, and you may not want these to apply to all your borrowing.

To ensure you get the best deal, compare the total financial impact of remortgaging to that of a secured loan to see which is the better option for you. Factor in how quickly you hope to be able to pay off the £80,000, and check out the early repayment conditions of any loan or mortgage before you take it out.

Read our full guide to remortgaging

Frequently asked questions

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