How do I compare loan offers in the UK?

Compare loans by looking at: APR (Annual Percentage Rate), monthly payment amount, total cost over term, fees (arrangement, early repayment), and flexibility. Use our calculator to see side-by-side comparisons. Always check the representative APR example and read the terms carefully.

What is a good APR for a personal loan in the UK?

A good APR for a UK personal loan is 5-10% for excellent credit, 10-20% for good credit, and 20-40% for fair/poor credit. The average personal loan rate in the UK is around 8-12%. Compare rates from multiple lenders using our comparison tool.

Should I choose a longer or shorter loan term?

Shorter terms: Higher monthly payments, lower total interest. Longer terms: Lower monthly payments, higher total interest. Choose based on your monthly budget and total cost preference. Use our calculator to compare different terms side by side.

What fees should I consider when comparing loans?

Key fees to consider: Arrangement fee (0-5% of loan), Early repayment fee (1-3%), Late payment fee, and Broker fee. Not all loans have arrangement fees. Compare total cost including all fees using our calculator.

Loan Comparison Calculator UK - Compare Loan Offers Side by Side

📝 Complete Guide to Comparing Loans in the UK

This loan comparison calculator UK helps you evaluate different loan offers side by side. Comparing loans is essential to find the best deal and save money. Understanding APR, fees, and total cost helps you make informed borrowing decisions.

💰 What to Compare When Choosing a Loan

APR (Annual Percentage Rate): Total cost including interest and fees
Monthly Payment: Amount you'll pay each month
Total Cost: Total amount repayable including fees
Arrangement Fee: Upfront fee charged by lender
Early Repayment Fee: Penalty for paying off early
Flexibility: Overpayment options, payment holidays

📊 UK Personal Loan Rates (2026)

Excellent Credit (750+): 5-9% APR
Good Credit (650-749): 9-15% APR
Fair Credit (550-649): 15-25% APR
Poor Credit (below 550): 25-40% APR
Average UK personal loan APR: 8-12%

📈 Loan Comparison Example

£10,000 loan, 5 years:
6.9% APR: Monthly £197, Total £11,820
8.5% APR: Monthly £205, Total £12,300
10.9% APR: Monthly £217, Total £13,020
Difference: Over £1,200 between best and worst

📊 UK Loan Statistics (2026)

Average UK personal loan: £12,000
Average loan term: 4-5 years
Average APR: 8.5%
70% of loans are for debt consolidation
30% of loans are for home improvements
90% of borrowers compare at least 2 lenders

💡 Tips for Finding the Best Loan

Check Credit Score: Improve before applying
Use Comparison Sites: Compare multiple lenders
Check Eligibility: Soft search first
Read Terms: Understand all fees
Consider Total Cost: Not just monthly payment
Look for 0% Arrangement Fees: Saves money upfront

⚡ Key Loan Comparison Factors

APR vs Interest Rate: APR includes fees, more accurate
Representative APR: What 51%+ of applicants receive
Total Charge for Credit: Total cost of borrowing
Loan Term: Longer term = lower payments, more interest
Early Repayment: Check for penalties

⚠️ Important Considerations

Representative APR: Not everyone gets this rate
Fees: Look for hidden charges
PPI: Payment Protection Insurance (optional)
Late Payments: Fees and credit score impact
Affordability: Don't borrow more than you can afford

Loan Comparison Calculator UK

📊 Compare Loan Offers

🏦 Bank A

🏦 Bank B

🏦 Bank C

🏦 Bank D

📊 Loan Comparison Table