Compare Personal Loans in United Kingdom

Live offers

20 live offers compared from 20 providers, from 5.50% APR. Updated daily.

What is a personal loan in the UK?

A personal loan is an unsecured loan for a fixed amount, repaid in equal monthly instalments over a set term, usually one to seven years. Because it is not secured against your home or car, approval and pricing depend heavily on your credit profile. Personal loans are commonly used for car purchases, home improvements, debt consolidation and large one-off costs.

The certainty of a fixed rate, fixed term and fixed monthly payment makes them straightforward to budget for, unlike revolving credit such as credit cards or overdrafts.

How the UK personal loan market works

Lenders advertise a representative APR, which at least 51% of accepted applicants must receive, but your actual rate depends on your credit score, income and the amount borrowed. Larger loans, typically £7,500 to £15,000, usually attract the lowest rates, while small loans cost proportionally more. Many lenders offer a soft-search eligibility check that shows your likely rate without affecting your credit file.

The representative APR includes interest and any compulsory fees, making it the fairest way to compare deals.

Leading UK personal loan providers

The major high-street banks dominate: HSBC UK, Barclays, NatWest, Lloyds Bank, Santander UK, Halifax and TSB all offer competitive personal loans, often at their best rates to existing current-account customers. Tesco Bank is a strong non-bank lender. Digital lenders and comparison marketplaces also feature heavily, and a soft-search comparison usually reveals the sharpest rate for your profile.

How to choose the right loan

APR — the headline comparison figure, covering interest and compulsory fees.

Term — a longer term lowers monthly payments but increases total interest paid.

Early repayment — check the early settlement terms; the Consumer Credit Act caps most penalties.

Soft search — use eligibility checkers to protect your credit file while comparing.

What it costs

Representative APRs currently range from around 5.5% for larger loans to strong-credit borrowers, up to roughly 21.9% or higher for smaller sums or weaker credit profiles. The total cost depends on both the rate and the term, so borrowing over the shortest affordable period minimises the interest you pay overall.

Protections and regulation

Personal loans are regulated by the Financial Conduct Authority (FCA) under the Consumer Credit Act, which gives you a 14-day right to withdraw and the right to settle early, usually with limited penalties. Complaints can go free to the Financial Ombudsman Service (FOS). Loans do not carry Section 75 protection on the purchase, that applies to credit cards, so consider how you pay for the underlying item.

Common questions

Will applying hurt my credit score? A full application leaves a mark; use soft-search eligibility checkers first.

Can I repay early? Yes, and you can reclaim some interest, though a small early-settlement charge may apply.

Loan or credit card? Loans suit fixed, larger borrowing; 0% cards can suit shorter, smaller amounts.

Can I use a loan to consolidate debt? Yes, consolidating higher-cost debts into one lower-rate loan can cut monthly payments, provided you avoid running the old balances up again.

What if I am refused? A rejection can dent your credit file, so check eligibility with soft searches first, and address any errors on your credit report before reapplying.

Personal Loans in United Kingdom — FAQ