free2 loans review

free2 claims to provide "free thinking finance", offering unsecured personal loans specifically designed for over 55s.

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free2

What is free2?

free2 is a personal loan broker that provides unsecured loans specifically for those aged over 55. It aims to provide better borrowing options for those with an excess guaranteed pension income (either an annuity or final salary pension), without having to use their house as security against a loan.

Retired or semi-retired borrowers often have limited choices when it comes to getting unsecured finance, especially for larger loan amounts. free2 gives borrowers with a pension income the opportunity to use it to cover the cost of the loan.

Unlike other credit brokers, free2 operates as the authorised representative for a single lender, RS Consumer Finance Limited.

free2 Over 55s unsecured loan

free2 currently offers one specific type of loan – an unsecured personal loan for those aged over 55. Loans are offered from £5,000 to £150,000, with a fixed interest rate. You can choose to repay the loan over 5 to 20 years, but the loan must be paid off before you turn 75.

You can use the loan for any worthwhile personal purpose, and if you die during the loan term, the remaining balance will be written off.

How do free2 loans work?

free2 unsecured loans are available for UK homeowners aged at least 55, who have an excess guaranteed pension income. Like with a regular personal loan, you’ll need to apply for a free2 unsecured loan by completing an application form.

You’ll need to provide the following as part of your application:

  • Personal and contact details
  • Information on your assets, debts and liabilities
  • Three months of bank statements
  • Personal ID

Once you’ve applied, free2 will assess your affordability and perform a credit check. If you’re successful, you’ll then receive a call from a free2 staff member to talk you through the loan agreement. Once you’ve accepted and signed your agreement, you should receive the funds within 48 hours.

Is free2 safe?

free2 is authorised and regulated by the Financial Conduct Authority (FCA) and a recognised loan broker. However, as with any personal loan, you should only borrow what you can afford to repay.

Am I eligible?

In order to apply for a free2 personal loan, you’ll need to meet the following criteria:

  • Be aged 55 to 70
  • Have a excess guaranteed pension income

Is free2 right for me?

free2 unsecured personal loans may suit those older borrowers looking to get additional funds without having to dip into their savings or without having to use their house as security against a loan. It may especially be useful for those looking to borrow more than £30,000 as it can be difficult to secure a loan of that size without a regular income.

Pros and cons

Pros

  • Large loan amounts
  • Flexible loan terms
  • Designed specifically for those with a pension
  • Does not require you to use your house as security

Cons

  • Only available to those aged 55-70
  • Must have excess guaranteed pension income
  • Rates may be less competitive than a secured loan

The verdict

free2 offers an alternative to pensioners looking to borrow money and who may find their existing options limited. With large loan amounts, and no need to use your house as security, the free2 Over 55s unsecured loan may be worth considering for borrowers over the age of 55 wanting to get a competitive loan.

Loans for over 55s

Lender Upper age limit Minimum income Accepts pension income Link
Everyday Loans 75 at the start of the loan £15,000 per year Not specified Check eligibility
Bamboo 72 when the loan term ends No minimum income specified Not specified Check eligibility
Oplo 70 when the loan term ends £15,000 per year Yes, however you must be in some form of permanent employment to apply Check eligibility
118 118 Money 70 at the start of the loan £700 per month Yes Check eligibility
Post Office Money 70 when the loan term ends £12,000 per year Yes Check eligibility
AA 70 when the loan term ends £12,000 per year Not specified Check eligibility
Progressive Money 70 at the start of the loan No minimum income specified Not specified Check eligibility
Lending Works 70 at the start of the loan No minimum income specified Not specified Check eligibility
My Community Bank 65 at the start of the loan £18,000 per year Not specified Check eligibility
NatWest No upper age limit specified No minimum income specified Yes Check eligibility
Royal Bank of Scotland No upper age limit specified No minimum income specified Yes Check eligibility
Likely Loans No upper age limit specified £5,000 per year Not specified Check eligibility
John Lewis Financial Services No upper age limit specified No minimum income specified Yes Read our review
Zopa No upper age limit specified £12,000 per annum Yes Check eligibility
Hitachi Personal Finance No upper age limit specified No minimum income specified Yes Check eligibility
RAC Personal Loans No upper age limit specified £15,000 Not specified Check eligibility
Lendable No upper age limit specified £800 per month Not specified Check eligibility
Nationwide BS 79 at the start of the loan £700 per month Not specified Read our review
Sainsbury's Bank 79 at the start of the loan £7500 per year Yes Read our review
Tesco Bank 74 when the loan term ends No minimum income specified Yes Read our review
Bank of Ireland UK 70 when the loan term ends No minimum income specified Not specified Read our review
Admiral 70 when the loan term ends £10,000 per year Yes Read our review
Creation Financial Services 69 at the start of the loan £9,600 per year Not specified Read our review
Bank of Scotland No upper age limit specified No minimum income specified Not specified Read our review
M&S Bank No upper age limit specified £10,000 per year Yes Read our review
Barclays Bank No upper age limit specified No minimum income specified Not specified Read our review
Ulster Bank No upper age limit specified No minimum income specified Not specified Read our review
AIB No upper age limit specified No minimum income specified Not specified Read our review
Halifax No upper age limit specified No minimum income specified Yes Read our review
Santander No upper age limit specified £6,000 per year Not specified Read our review
HSBC No upper age limit specified £10,000 per year Yes Read our review
cahoot No upper age limit specified £6,000 per year Not specified Read our review
Virgin Money No upper age limit specified No minimum income specified Yes Read our review
Monzo Bank No upper age limit specified No minimum income specified Not specified Read our review
Metro Bank No upper age limit specified No minimum income specified Not specified Read our review
Danske Bank No upper age limit specified No minimum income specified Not specified Read our review
TSB No upper age limit specified No minimum income specified Yes Read our review
JN Bank No upper age limit specified £1,000 per month Not specified Read our review
MBNA Limited No upper age limit specified No minimum income specified Not specified Read our review
Lloyds Bank No upper age limit specified No minimum income specified Yes Read our review
First Direct No upper age limit specified No minimum income specified Yes Read our review
Starling Bank No upper age limit specified No minimum income specified Not specified Read our review
Shawbrook Bank No upper age limit specified £15,000 Not specified Read our review
Leap No upper age limit specified £25,000 per annum Not specified Read our review
Azure Money 70 at the start of the loan £1500 per month Not specified Read our review
Late repayments can cause you serious money problems. See our debt help guides.

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