Use the table below to estimate the monthly and overall cost of your loan from a range of popular lenders. However, it’s worth keeping in mind that lenders may only be willing to offer unsecured loans above £25,000 to existing customers, or borrowers who have excellent credit ratings. If you’re looking to borrow this much, you may want to consider a secured loan.
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Realistically, borrowing £25,000 without security is highly likely to require a very good credit score. While personal loans are available from both traditional and more specialised lenders, and come in a variety of forms: secured, unsecured, short term, long term etc., £25,000 is definitely at the upper end of the unsecured lending spectrum. The first step to taking out the right loan for your needs is to understand your options. If you don’t have the best borrowing history, a secured loan might be a better suited option for you. But as these loans are secured against an asset, usually your home, you could lose it if you don’t keep on top of your repayments.
You’ll most probably have more options available to you if you’re looking at borrowing £25,000 and you have a good credit rating. You’re likely to be able to apply to the majority of lenders, but to get approved and enjoy the most competitive rates you’ll need to prove that the loan is affordable. Your current bank may offer larger sums and faster funding to existing customers, though it usually pays to shop around if you can.
To get a £25,000 loan with bad credit, you’ll need to provide security – in other words, you’ll need to be a homeowner with a mortgage, and willing to use the equity in your property as security. You may choose to simply remortgage or you may opt to take out a “second-charge mortgage”, so that your first mortgage isn’t affected.
Having security means that a loan represents lower risk to a lender, which normally in turn means lower rates for the borrower (plus a stronger chance of getting approved). Just bear in mind that if you opt to spread repayment over, say, 25 years, however, then obviously the overall cost of borrowing will be much higher than borrowing over, say 10 years. It’s a big commitment, so take a moment to read through these guides:
| 5% p.a. interest | 10% p.a. interest | 15% p.a. interest | |
|---|---|---|---|
| 3-year term | £749 | £807 | £867 |
| 5-year term | £472 | £531 | £595 |
| 7-year term | £353 | £415 | £482 |
| 5% p.a. interest | 10% p.a. interest | 15% p.a. interest | |
|---|---|---|---|
| 3 years | £26,974 | £29,040 | £31,199 |
| 5 years | £28,307 | £31,871 | £35,685 |
| 7 years | £29,681 | £34,863 | £40,523 |
The loan examples above are calculated using a flat fixed rate and are only approximate, rounded figures. Your specific loan payments may be higher or lower depending on factors like your repayment schedule, loan term and potential fees.
Taking out a £25,000 loan for business purposes is different to doing the same for personal use. Often lenders specifically state that their loans cannot be used for a business. However, business loans are available, with some receiving government backing, which can lead to lower rates.
When applying for finance, you inevitably open yourself up to a degree of financial scrutiny. So what is a would-be lender looking for? Here are some of the main things they’re likely to be interested in:
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