Personal Loans

If you want to borrow no more than £25,000 then a personal loan is a good option. There’s no need to own your home and the loan is unsecured.

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What is a personal loan?

A personal loan is an unsecured loan that means you can borrow up to £25,000 without providing any security or collateral. You don’t risk losing a valuable asset.

Instead, the lending decision is based on your financial circumstances:

  • your credit rating – so what’s in your credit file is important
  • the affordability of repayments – your income vs. expenses

Our free broker service shows your enquiry to the relevant lenders in our panel. Instantly we’ll tell you which are interested in lending to you in principle.

Some lenders may be able to give you a tailored quotation by conducting a soft search of your credit file (i.e. the search is not recorded). Other lenders will use other criteria to decide if they want to make an in-principle offer (in which case we’ll show you their representative deal). Use our comparison service to make sure you get the best deal given that interest rates are at historic lows. All credit ratings can be considered.

Compare personal loans

One in ten adults in the UK already has a personal loan. They’re great for large, one-off expenses such as cars, home improvements, weddings, and holidays, They’re also an option if you want to consolidate other unsecured debts to help reduce repayment costs and simplify administration. The market is competitive and there are numerous lenders. We’ll help you find what you need and do so without impacting your credit rating. If you are a student thinking of paying off your student loan with a personal loan you should read this.

What so I need?

1: Decide what you need

Calculate how much you need to borrow. Then use our calculator to help estimate the monthly repayments. Vary the loan amount and repayment period to ensure affordability.

Choose the lender

3: Choose the Lender

Compare the quotes given to you and decide which one(s) seem to most closely meet your needs. Then click through to complete your application online.

Receive the cash

4: Receive Your Money

All lenders are capable of paying out your loan the same day they approve your application. It will be sent to your bank account.

Top tips when using a personal loan

If you’re considering applying for a personal loan then there are things you can do to make your experience as painless as possible:

  • Borrow only what you need
  • Be aware of interest rate bands – borrowing slightly more may reduce total costs
  • Make sure you can afford the repayments
  • Repay your loan on time and in full
  • If you can repay your loan early then do; you’ll save lots of interest
  • Keep tabs on your credit file & know your credit score (find out more)
If you have any questions then take a look at our FAQs

Interest rates are at an historic low

For people with a clean credit history, personal loans have never been cheaper. Rates also depend on the amount you borrow. Generally, the lowest rate is available when you borrow over £5,000. Currently, you can borrow £5,000 and above for as little as 3% APR.

But even for those with some form of credit problem, there are numerous lenders who could help and by getting them to compete for your business you can still get a competitive deal.

Lenders who adjust interest rates to reflect a specific credit history will suit people with modest credit problems. A poor credit personal loan (e.g. defaults, arrears, ex-bankrupts) will attract higher interest rates and sometimes lenders who offer a flat rate may be the most competitive. It’s also worth considering the merit of a guarantor loan in such situations.

Types of personal loans

Personal loans are a highly evolved and competitive form of credit. Over time lenders have developed a variety of products to meet the needs of different segments of the UK population. So, if you don’t own your home, if you want a smaller loan, a loan particularly fast, or you have credit issues there’s almost certainly a personal loan that can meet your needs.

Alternatives to personal loans

Personal loans are known for their speed and flexibility. But these advantages can be outweighed by some important disadvantages. There may be occasions when you need more than a personal loan can provide:

  • You want to borrow more than a personal loan will allow
  • You want an even lower interest rate than an unsecured loan will permit
  • Your credit rating is making it hard to be accepted by a lender

If these things are problems for you then you could consider these loans as alternatives:

Estimate Personal Loan Repayments

Estimate your loan repayments

How much would you like to borrow?

How long for? (months)

Monthly repayments £144.32
Total to repay £3,463.68
Representative 14.2 APR

This tool is for guidance ONLY. It is designed to help you estimate loan repayments. It uses the representative APR of the product. Lenders have a duty to conduct affordability checks when you apply for a loan.

Representative example: Borrow £9,000 over 48 months. Repay £246.84 per month. Total charge for credit will be £2,848.42. Total amount repayable is £11,848.42. Representative APR 14.2% (vrbl)


Personal Loans Guide

If you’re uncertain which type of credit might suit you or you have a money problem then one of the guides may help you. We summarise each type of loan and its pros and cons and address issues regarding debt and credit ratings.

Personal Loans FAQs

Answers to Your Personal Loan Questions

How does a personal loan work?

A personal loan is an unsecured loan. It does not require you to provide any asset as security. So, there is no risk of losing anything valuable if for some reason you struggle to repay what you’ve borrowed. Rather than using security, the lender assesses your creditworthiness (i.e. how you’ve behaved repaying credit in the past) and the affordability of the repayments.

Can I get a personal loan?

If you satisfy these basic criteria then your application for a personal loan will be considered:

  • You are a UK resident aged 18+
  • You have an income net of tax of at least £10,000 per annum
    • income from employment, benefits, pension or investments
    • but loan repayments must be affordable (i.e. within your budget)
  • You don’t have to be employed (self-employment is often acceptable)

There are lenders for all credit ratings so having an impaired credit rating my not be an issue. However, if your credit rating is impaired in some way you may be offered a personal loan that requires a guarantor or cosigner. This type of loan may allow you to get a personal loan at a lower rate of interest than might otherwise be possible.

How do I apply for a loan? Are there any restrictions?

Fill in the online form to submit your loan requirements and we’ll give you an instant answer. We have access to a large panel of lenders who between them can offer a wide range of loan solutions.

There are relatively few restrictions about who can apply, but please keep the following in mind. You need to:

  • be aged 18+
  • be a UK resident
  • have a regular income
  • have a UK bank account (in most cases)

You do not need to have a perfect credit score and you do not need to own the home you live in. All lenders will want to ensure you can afford the loan repayments before agreeing to the loan.

If your credit history is particularly difficult then you might want to consider a guarantor loan – an unsecured loan of up to £20,000 where you do not need to be credit scored. Instead, you provide a guarantor for your loan.

To explore all your loan options simply use our Find Loan tool – 4 simple questions that will narrow down your loan options for you.

What's the difference between a personal loan and an unsecured loan?

A personal loan is the same thing as an unsecured loan. It does not require you to provide an asset (e.g. jewellery, car, house, etc) as collateral for what you have borrowed. So, you don’t put any assets at risk. Other forms of unsecured credit include bank overdrafts and credit cards. A personal loan differs because you borrow a fixed amount of money for a fixed period of time and make monthly repayments to gradually pay off your loan.

Can I use the personal loan for any purpose?

Yes. It’s that simple! Find out all about any purpose loans.

Does it make sense to consolidate my other debts?

Take care when thinking about consolidating debt. Don’t just consider the interest rate, but also the repayment period. If you are tempted to extend the repayment period to make paying off the debt more affordable think twice – making things more affordable in the short term may simply make the debt more expensive in the long term.

Our loan calculator can help you work this out.

I don't own my home. Can I still get a personal loan?

Yes. Whether you own your home or not is irrelevant for a personal loan as the loan is not secured on the property. So, we welcome loan enquiries from:

  • council tenants
  • social housing tenants
  • private tenants
  • those living with parents
  • those living with family
  • those living with friends
  • those in the military
  • homeowners
  • and anyone else resident in the UK aged 18+
How does a personal loan differ from a homeowner loan?

A personal loan differs from a homeowner loan in a number of significant ways:

  • Personal loans are unsecured whereas homeowner loans use your house as security
    • this means for a homeowner loan you need to own your home (& have a mortgage)
    • you don’t have to own your home to get a personal loan
  • With a homeowner loan, you can borrow larger sums of money (subject to various criteria). In principle, you could borrow in excess of £250,000 whereas a personal loan is limited to no more than £25,000 (subject to your credit rating and affordability).

With a homeowner loan you can choose to repay your loan over a period as long as 25-30 years. A personal loan is more typically 7-10 years maximum.

Should I use a secured loan rather than a personal loan?

Not necessarily. Secured loans use your property as collateral so you need to be the homeowner (with a mortgage). If you only want to borrow a moderate sum (say less than £15,000) then a secured loan wouldn’t be able to help.

More often than not a secured loan is used when the borrower needs a large sum of money – the average sum borrowed is £30,000 – £40,000.

Should I use a credit card rather than get a personal loan?

If you can get a 0% interest rate credit card that allows you up to 20 months to repay the amount you’ve spent without charging any interest then “yes”! Use the credit card but make sure you pay off the credit card debt within the allowable time or transfer the debt to a new 0% card.

However, credit limits on cards don’t generally exceed £5000 so if you need to borrow more you should consider a personal loan.

How much will my personal loan cost?

The rate you can get will depend on the amount you want to borrow, your credit status and the lenders who are available to you.

You can estimate your monthly repayments by using our personal loan calculator. You can see how much your payments change by changing the loan value and the repayment period.

More information about loan costs will become available to you by using our enquiry service to narrow down your loan options.

Do your loan options include peer to peer lenders?

Yes. Our service covers a wide spectrum of lending options. There are now many peer-to-peer lenders to choose from, but they each have different attitudes to risk. If you have a reasonable credit score and aren’t requesting too large an amount then they can be very competitive.

Their lending rates are driven strongly by credit scores – after all the money they are lending is not theirs but another person’s. They can’t afford to be accused of lending irresponsibly.

What happens after I've applied? Am I credit checked?

Once we have received your enquiry our trusted partner will assess it against the panel of lenders and draw up a shortlist of those than might suit your needs. They will contact you to discuss these in more depth and ask a few more questions. They may do a “soft search” on your credit file – this has no impact on your credit score but means they are able to tell you with more accuracy which lenders will lend to you in principle. No “footprint” is left by this search.

You have no obligation to proceed with any loan offer. If you decide to proceed with a lender they are likely to do a more detailed credit check and this will be visible to other lenders who view your credit file in the future.

I've had financial problems in the past. Can I still get a personal loan?

Past financial problems which are recorded in your credit file will affect your credit rating. This may deter some lenders but we have other lenders who specialise in helping people in this situation. These lenders’ interest rates will obviously be higher to reflect the extra lending risk.

Keep in mind that although a less than perfect credit file is not necessarily a problem you will need to prove you can afford to make the monthly repayments.

We also have access to numerous guarantor loans which are a form of personal loan designed with bad credit in mind. If you feel that you have a particularly difficult set of financial problems to overcome then you could consider one of these. But please remember that no loan is guaranteed. You may find that these are cheaper than a bad credit personal loan.

Do I need a guarantor for a personal loan?

Using a  guarantor (or cosigner) is useful if your credit history is particularly tricky. We have a separate section of this website dedicated to this type of finance. It explains when this type of loan might be worth considering.

These days guarantors don’t have to own their own home, and you can borrow up to £20,000. You may find you can obtain a loan at a lower APR% than using a normal bad credit personal loan.

Can I take out a personal loan in joint names?

Yes. This should not be a problem. Keep in mind that having a loan in joint names exposes you to the risk of having to repay the entire amount outstanding if the other party won’t or can’t pay what they should. When signing a credit agreement in joint names you do not need to be married or in a civil partnership.

You should avoid applying jointly with anyone who has a poor credit rating. Once you are part of a joint agreement your credit file will be linked to theirs.

This means in the future if you seek credit on your own the other person’s credit file will influence a lender’s decision about you. Before entering into any joint agreement you should both check your own credit ratings.

Are there any fees for arranging my personal loan?

Using us as your loan broker is free. Any company that charges upfront fees should be avoided as there is no need for this. If you take out a personal loan we may receive a commission from the lender, but this is not added to your loan.

If you receive a phone call from anyone claiming to be us and requesting an upfront payment (e.g. via bank transfer, UKash, etc) put the phone down! We do not run a call centre and we do not charge any fees. See our loan scam warning.

What should I do if I get into financial difficulties?

Don’t stick your head in the sand! It doesn’t make the problem go away. The sooner you confront it the better.

What you certainly need to do is talk to your lender. It is in their own interest to work out a way for you to repay the loan. They won’t write the debt off so are likely to come up with a new payment plan that you can afford.

There may be implications for your credit file but you will minimise them by working with the lender to sort out the problem with your personal loan.


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For over a decade Solution Loans has helped people all over the UK find solutions to their personal finance problems.



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Our reputation is great. In fact we have scored 4.7 out of 5 based on 423 ratings & 61 user reviews for our personal loans service.


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Written/Reviewed by: Amanda Gillam

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