Cheapest Loan Deals

The following is a guide to the current cheapest personal loans available in the UK. This guide will enable you to get the lowest possible interest rates.

Cheapest loans without insurance

First, locate the loan with the lowest Annual Percentage Rate (APR) of interest for the amount you are borrowing.

Borrowing over £1,000 at 12.9% APR.

Abbey charges 12.9% on amounts over £1,000. Only existing Abbey customers can apply online though, new customers need to call 0800 234 6069 and may not get this rate. Otherwise, Barclaycard charges 13.8% or Cheap Short Term Borrowing may also be an alternative at this rate.

Borrowing over £3,000 at 10.8% APR.

Moneyback offers a rate of 10.8% for amounts over £3,000 (up to £5,000).

Borrowing over £4,000 at 7.8% APR.

Barclaycard charges 7.8% if you’re borrowing over £4,000. Alternatively Masterloan offers 7.8% for loans of £4,000+ but is available only over the phone, you can call it on 0800 0566223.

Borrowing over £5,000 at 7.6% APR.

YourPersonalLoan charges 7.6% on amounts over £5,000. Even though it’s not a secured loan, you do need to be a homeowner and should tick the box not to share your information in order to avoid sales calls from affiliated groups. Moneyback also offers 7.6% on amounts between £7.5k and £15k. The next cheapest is Barclaycard at 7.8%.

Borrowing over £25,000

The maximum borrowing on a personal loan is £25,000. To borrow more you’ll need a combination of loans, though this isn’t always easy. It may be possible to add the debt to a re-mortgage, though remember that could involve paying it off over a much longer period and racking up interest, and means securing the debt on your house. If you are looking for this size loan, be very careful, it is a large commitment.