£25,000 is usually the highest unsecured loan providers are prepared to go (although high-street banks commonly stretch higher for existing customers). To borrow that much without securing the loan, you’ll need to have excellent credit. You’ll also need to be able to afford the repayments (in the lender’s opinion), and with loan terms usually capped at 7 or 8 years, those won’t be small. Use the link below to check out today’s unsecured rates and calculate costs.
Compare unsecured personal loans
See today's rates from across the personal loan market.
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 – although a few lenders, including the AA, will offer up to £35,000. 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:
This will depend on the interest rate you receive and the length of your loan term. For example, a £25k loan with a 10-year term and 5% fixed rate could have a monthly repayment of £265.16. In comparison, a £25,000 loan with a 5-year term and 10% fixed rate could cost £531.18 per month. You can calculate the cost of your £25k loan here.
| 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:
A secured loan can help you consolidate your existing debt by offering lower rates and more flexible loan terms.
A secured loan lets you use the equity in your house as collateral against the loan, even if you have bad credit. See how it works in our guide.
Browse our expert tips on how to get approved for a £70,000 loan and find the best rate deal possible.
Learn how to find the best deal on a £60,000 loan.
Discover how to find the best interest rate for an £80,000 personal loan, as well as how to boost your chances of being accepted for one.
If you’re considering applying for a £50,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
Looking for a great deal on a £40,000 personal loan. We explore all your options and explain how to find the best one.
Find out how to pick out the best deal on a £30,000 personal loan. We weigh up all your options and how to find the best one.
Find out how to maximise your chances of approval and apply online today. Compare live rates, fees and eligibility criteria to get the best loan for your needs.
