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Representative Example: Amount of credit: £1,000 for 12 months at £107.53 per month. Total amount repayable of £1,290.36. Interest: £290.36. Interest rate: 49.9% p.a. Fixed*. 49.9% APR Representative.
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Loans come in many shapes and sizes. While it is possible to get a loan lasting as little as a month (a short term loan), there are many loans that could last for years as well. For some people, a long term loan UK could be the best option for their situation. It can help them spread the cost of the loan over several years - 24 months, 36 months, or longer, offering affordable repayment terms and the chance to finance a larger purchase.
In some cases, people opt for long term loans to refinance debt across several years. For example, a long term loan could help pay off an existing loan, possibly for a more appealing rate. This is called debt consolidation. Some people choose to spread the cost of a credit card debt by swapping it for a loan over a year or more, for example.
The most important thing to do before getting any personal loans is to read everything you can about them. Make sure you understand what long term personal loans offer. You have a responsibility to meet the monthly repayments and to make sure you pay back the total amount payable. If you're considering a loan, long term loans might be what you're after. You can find out more about them here.
If you want to get a long term loan, it's important to think about how many years you want it to last. It's worth experimenting with some numbers before you consider applying. The basic description for a long term loan is anything lasting 12 months or more. A short term loan would describe anything that is paid back in less time than this. Other typical examples for long term loans include two years and three years, but there are many others too. Lenders authorised and regulated by the FCA supply short term and long term loans with various monthly payments.
Of course, this still gives you plenty of scope for deciding how long the loan you'd borrow might last. Let's go through three of the most important factors to consider before you apply for a long term loan.
Every long term loan lasts for an agreed period. This might be 12 months, 24 months, 36 months, five years, or over an even longer time, to give you just a few examples. It's best to remember that the longer you take to repay the long term loan, the more interest you'll pay on it. The interest rate will also affect your overall payment. The higher the interest rate, the more you'll pay overall.
So, the challenge is to pick the shortest term possible for your long term loan, while getting the lowest interest rate you can. Crunching some numbers on a loan calculator is a much better idea. It should help you work out which long term loans would best suit your circumstances, long before you apply for anything. Think about the total amount payable, as this includes interest and gives you a better idea of the total money you'll repay rather than just the monthly amounts you'll pay over the period.
You'll need to make sure you can easily meet the monthly payments for any long term loans UK you decide to apply for. Before you apply for a long term loan, make sure you work out how much surplus cash you have each month. It's best not to stretch yourself too much here. For instance, if you have £100 surplus cash each month, you shouldn't plough it all into repayment terms for a long term loan. Always make sure you have some wiggle room in there.
Every loan comes with an interest rate. That interest rate may vary from one application to another. You should find an APR representative rate for each offer you see. The APR representative info allows you to compare different loans on a like for like basis across the same lending period.
Different companies may offer a different interest rate as well. There are many variables to think about before you apply for a long term loan like this. Interest rates are one of the key factors to bear in mind. Consider whether early repayment is possible too. Some firms may charge if you choose early repayment, so make sure you know ahead of applying whether that might be the case. If in doubt, get in touch with them and ask.
One of the most important things to consider is how the interest rate affects your total repayments. Each payment consists of a portion of the total amount borrowed, plus interest on that amount. Before you accept any offer for personal loans, you should be able to see the interest rate you'll pay on the loan. You should also be able to read through a representative example that shows you how the interest overall on the amount borrowed gives you the total repayable amount. This will include the APR representative amount (APR stands for annual percentage rate). The APR representative example may be in small print but it will be there.
You've also got fixed and variable rates to consider for your monthly payment. If you see P A fixed, you know this refers to a per annum (or year) fixed-rate deal. This means your monthly repayments will always be the same, giving you reassurance over what you'll pay each month. Variable rates may change during your loan term, and so will the repayments for the amount of money you end up paying each month.
All lenders want to be sure you can meet the total amount payable and pay it back under the terms of that loan. All lenders are regulated by the Financial Conduct Authority (FCA) and must adhere to guidelines laid down by them. However, this doesn't mean all loans are equal. We've seen how interest rates and your ability to pay it back can influence any offers you could receive.
If you want to apply for a long term loan, no credit check is necessary if you're asking whether a lender would consider you for loan repayments. They want to know you can pay it back, and may consider you for pre-approval for one of their loan amounts.
Long term loans for poor credit are available if you have a poor credit rating. While some lenders won't consider you if you're in this situation, others specialise in this area of the market. Even when a traditional lender may reject you for certain loan amounts, a specialised lender may give a different result.
We can split long term loans into two broad categories:
A guarantor is someone who guarantees the loan is repaid if the person applying for the loan doesn't meet the repayments. They would need to pay it instead. There is a chance you might get lower interest rates on loans with a guarantor. However, you should consider whether it is wise to seek help to borrow like this. It could harm the relationship you have with the guarantor if you get in touch with them to suggest the idea.
Conversely, some applicants may get approval for a long term loan deal, for example, if a guarantor is involved. This may not be the case for a long term loan, bad credit, no guarantor application. Either that or interest rates on the loans may be too high to make it a feasible offer long term to meet those repayments. The total amount payable could be higher.
Can you apply for long term loans with bad credit? You can, but it's best to do your homework on long term loans for bad credit UK first. It's also wise to know the difference between a soft and hard enquiry when considering the effect on your credit history.
A soft enquiry means you're asking lenders whether they would pre-approve you for the personal loan. It's not a formal application, so it doesn't affect your credit score. If you're looking for a long term loan for bad credit - or if you're spreading the cost of a purchase over a short term loan - take this route first. It should give you an idea of where you stand. You can usually get a representative example of how the loan would work too, without formally applying for it. Long term loans with no credit check fall under this description.
A hard enquiry is a formal loan application. This is where you ask the lender whether they will lend you the money you want. You shouldn't take this step until you've gone through the possibilities, crunched some numbers, figured out what you want to borrow and for how many years, looked at the typical interest rate you might pay, and found out the total amount payable on a loan with that rate. Other aspects, such as the APR representative example, are important here too.
This is the process that will register on your credit history. Lenders won't conduct a proper search without first seeking consent. For instance, we could connect you with a lender, but the hard check wouldn't occur until you decide to apply via their website.
It makes sense to spend some time thinking about long term loans bad credit UK before you work out whether you can afford what you would like to borrow - and certainly before you apply for this type of loan.
Firstly, it's important to remember there are two sources of loans:
Brokers have extensive knowledge of the industry and may be able to find a personal loan from different sources you may not be aware of. Let's say you are hunting for long term loans, bad credit, no guarantor, direct lender. This excludes any lenders you could find via a broker and therefore limits the potential sources of loans you might be able to find. You'd get representative examples from a smaller pool of lenders.
Comparing lenders will help you look at the loan amount offered, early repayment terms, how the loan amount is affected if you spread it over a longer time, and so on. Look at all the factors - including whether you can afford the repayments - before considering an application. Consider whether a loan is representative of the market or whether there could be better ones elsewhere.
Yes. You can find out all about repayment terms, personal loan terms and conditions, interest rates, and all the other factors we have covered here. If you want to borrow money over several years, it's often easier to research online rather than going out to a high street lender. It's easier to source more potential personal loan providers this way.
Let's say you have done your calculations, worked out the monthly repayments you can afford and for how many years, and looked at a loan for the longer term rather than a short term loan. Loans long term spread over several years make sense for you and you've looked at a representative example from several lenders. You know how much money you can pay back monthly. The question now is this - if you were accepted, how quickly could you get that money?
It doesn't matter whether you are looking for long term loans bad credit UK or whether you have an excellent record. The period of time it takes a lender to pay the agreed amount you wish to borrow over several years can vary. You could get the money you need within a few hours or it could take longer. It's important to be sure you have all the facts in front of you before you apply though. Think about how much money you might borrow, the repayment terms, and whether you need to borrow over a year, two years, or a longer period. It's possible that it won't take too much time to arrange your loan, however - if the lender grants approval.
When you want to borrow money, wanting to get a quick decision is understandable. You need to know where you stand. However, lenders need to know you're able to return the money with interest over the agreed number of years. You need to know the answer in advance. We hope our representative guide has helped you work out which steps to take next.