Halifax loans review 2020

Halifax personal loans are available to anyone, but have specific perks if you're an existing current account customer. Check out the lender's current rates and see how they compare.

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Halifax
81% of Halifax customers in our 2020 customer satisfaction survey would recommend the brand to a friend.
New customers could wait up to five days for their loan to be funded.

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Save time by checking whether (or not) you’ll be approved with multiple lenders and get rates based on your credit score.

How do Halifax loans compare against the competition?

Table: sorted by representative APR, promoted deals first

Before you take out a personal loan, it’s important to read up and shop around. You can use the table below to see how much you’d be likely to pay for the loan you have in mind.

Name Product Total Payable Monthly Repayment Representative APR Link
Zopa Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 5 years at a rate of 8.8% p.a. (fixed) with an application fee of £240.00. Representative APR 9.9% and total payable £12,602.87 in monthly repayments of £210.05.
Barclays Bank Existing Current Account Customer Barclayloan
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.5% p.a. (fixed). Representative APR 5.5% and total payable £10,848.60 in monthly repayments of £301.35.
Creation Financial Services Argos Unsecured Personal Loan
Creation Financial Services Argos Unsecured Personal Loan
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 9.9% p.a. (fixed). Representative APR 9.9% and total payable £11,527.92 in monthly repayments of £320.22.
Lending Works Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.8% p.a. (fixed) with an application fee of £0.00. Representative APR 10.0% and total payable £11,543.40 in monthly repayments of £320.65.
Halifax Existing Customer Personal Loan
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.5% p.a. (fixed). Representative APR 3.5% and total payable £10,539.72 in monthly repayments of £292.77.
My Community Bank Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 23.9% p.a. (fixed). Representative APR 23.9% and total payable £13,678.20 in monthly repayments of £379.95.
Lloyds Bank Existing Customer Personal Loan
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.
Halifax Personal Loan
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.5% p.a. (fixed). Representative APR 3.5% and total payable £10,539.72 in monthly repayments of £292.77.
Hitachi Personal Finance Hitachi Personal Loan
Check eligibility
View details
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.5% p.a. (fixed). Representative APR 3.5% and total payable £10,539.72 in monthly repayments of £292.77.
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Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

What is Halifax?

Named after the West Yorkshire town where it was founded as a building society in 1853, Halifax is now part of the Lloyds Banking Group, and a major player in the UK banking market. It’s also known for briefly making a cult star of Howard Brown, the former face of its TV advertising campaigns.

Whether you’re looking to buy a new car, consolidate debt, refurbish the kitchen, or take that desperately needed holiday, Halifax offers competitive and flexible fixed-rate loans.

Key features of Halifax loans at a glance

You don’t necessarily have to have your current account with Halifax to apply for a Halifax personal loan, but there are some potential benefits if you do.

New customers

Loan typeUnsecured Personal Loan
Loan amounts£1,000.00 to £25,000.00
Loan terms1 Year to 7 Years
Loan rate typeFixed
Product fee0%
Same day funding available
Instant decisions in most cases
Soft-search facility available
Joint applications
Overpay without penalty
Concurrent loans allowed
Topping-up pays off existing loan and initiates a new loan
Repayment methodsDirect Debit
Halifax states that existing current account holders could get a quote in as little as ten minutes and could then receive the funds instantly.

Halifax current account holders

Loan typeUnsecured Personal Loan
Loan amounts£1,000.00 to £35,000.00
Loan terms1 Year to 7 Years
Loan rate typeFixed
Product fee0%
Same day funding available
Same day funding noteSubject to internet banking log on
Instant decisions in most cases
Soft-search facility available
Joint applications
Overpay without penalty
Concurrent loans allowed
Topping-up pays off existing loan and initiates a new loan
Repayment methodsDirect Debit
Halifax states that funds should reach new customers’ accounts within five working days from accepting the loan offer.

Joint loans are also available through Halifax, but you must apply by phone or at a branch.

You can choose the day of the month on which repayments are taken (most people arrange this for on or just after their payday). If your first loan repayment would fall within nine days of the funds being drawn down, the first repayment will be due on that date the following month.

What is APR?

The Annual Percentage Rate (APR) is designed to provide an annual summary of the cost of a loan, taking into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan. Because Halifax doesn’t charge an arrangement/product fee, the interest rate and the APR are the same.

All lenders calculate the APR of their products in the same way and must tell you the APR before you sign an agreement.

Bear in mind, however, that lenders are only obliged to award this rate to 51% of those who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR. If Halifax looks at your circumstances and credit history and decides that you’re a higher risk, it may offer you a loan at a higher rate of interest.

I got a quick decision and the money was transferred to my bank account immediately. The interest rate was reasonable and it was easy to manage the loan online.”

Halifax customer in Finder's 2020 survey

Am I eligible for a Halifax personal loan?

You should only apply for a Halifax personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:

  • You must be aged 18 or over.
  • You must be a UK resident (excluding the Channel Islands and the Isle of Man).
  • You must be in paid employment, or have a regular income.
  • You must not be in full time education.
  • You must not have been declined for credit in the last month.
  • You must not have a history of bad credit.

What credit score do I need to get a Halifax loan?

Halifax typically offers loans to applicants with high credit scores. It's important to note that your credit record is just one factor that Halifax will consider, however if you don't have a high credit score, you're very unlikely to get approved for a Halifax loan.

A "Good" or "Excellent" credit rating would require a score of 881 or higher, if you're referring to Experian's scale, 420 or higher if you're referring to Equifax's scale and 604 or higher if you're referring to TransUnion's scale.

Can I get a second Halifax loan?

Yes, Halifax allows you to have more than one loan running at the same time. Each application for credit will be considered on its own merit. Alternatively, Halifax also allows you to effectively "top up" your loan, by closing your current loan and starting a new, larger loan. There's no penalty for repaying ahead of time, but bear in mind that any overpayments may be subject to up to two month's of interest beyond the date on which you overpay. Because of this, it may work out cheaper to run a second loan alongside the first, rather than consolidating the two.

Can I make overpayments on a Halifax loan?

Yes, you can make overpayments without incurring any penalty fee. However Halifax can continue to charge interest for up to two months on any sums overpaid, so although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.

How do I apply?

Make sure you have the following information handy for your application:

  • Your address details for the past three years.
  • Your current employment details, if in employment.
  • Your monthly income and monthly outgoings.
  • Your UK bank or building society account details.

And to confirm your identity online (if you’re not an existing customer) you’ll need:

  • Valid UK passport or UK driving licence (including provisional driving licence) with photo.
  • Smartphone or tablet with camera.
  • A pen and paper.

Can I get a Halifax homeowner loan?

No. Halifax doesn’t offer second charge mortgages, which are also known as “homeowner loans” or “secured loans”. If you’re a homeowner with a mortgage, then a secured loan can let you leverage the equity you’ve built up in your home to access larger loan amounts and/or lower interest rates. These tend not to be offered by high street banks, but by long-standing specialist companies (Optimum Credit is one of the best known). You can learn about secured loans and compare your options in our comprehensive guide.

Frequently asked questions

Will you be approved?

Check your personalised rates and likelihood of acceptance.

Personal loans ratings

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our customer satisfaction scores (“Customers say”) are based on a survey of 750 customers carried out in December 2019.

To find out more, read our full methodology.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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