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Why do I need a loan?

You might consider a personal loan either for a large purchase, such as a new car, a wedding or a holiday or to pay off other debts including credit cards and store cards. The interest rate of your loan may vary depending on your credit history and remember you need to make your monthly repayments in full and on time to avoid negatively impacting your credit score.

Apply for a pre-approved loan
  • In a few simple steps you can see a range of lenders that are most likely to accept you for a loan
  • Search for loans without impacting your credit score
  • Get a decision in minutes
  • Provided by our preferred loans broker Loans Warehouse
Personal Loans

Borrow up to £35,000 over 10 years with a personal loan.

  • Compare rates from across the market
  • Options for repayment holidays and no early repayment charges
  • Choose those loans that accept debt consolidation
Secured Loan

Borrow larger sums of money, secured against your home or property usually for a duration of 10 years or more.

  • Review the market to see the range of secured loan rates on offer
  • Speak to our preferred secured loan broker for free advice
  • Available for home improvements, a new car or a holiday
  • Options for debt consolidation
Poor Credit Loans

Loans for those with a low credit score or who may have had issues with repaying finance in the past.

  • Get a no obligation loan quote today
  • Options include guarantor loans
  • See which lenders and at what rates they would accept you for a loan
  • Easy and fast process that doesn’t impact your credit score
Car finance and leasing
  • You can buy a car using a loan, credit card, cash, hire purchase or personal contract purchase
  • You can also lease a car - which is a form of renting a car for set period
  • Personal contract purchase and leasing allows you to drive a new car every couple of years
  • Discover car finance and leasing providers today 
Disclaimer shows whole of market personal loans and secured loans information. For all secured loans will refer you to Loans Warehouse. For personal loans you can choose to go to a lender directly using the Go to Provider button or can opt to use Loans Warehouse to find which lenders will pre approve you for a loan.
Loans Warehouse is an independent credit broker authorised and regulated by the Financial Conduct Authority, who offer a personal loans pre-approval service. Any legal or contractual relationship will be with them. Limited is an independent credit broker not a lender and will receive a payment from Loans Warehouse where customers take a loan following a link to them from This arrangement does not affect our independence.

Loans Explained

nigel woollsey

Nigel Woollsey

Online Writer

What are the different types of loan?

There are different loans available for individuals and businesses, and these loans also vary depending on the reason you need the loan and your credit situation.

For individuals, there are personal loans and secured loans. For businesses, there are business loans and bridging loans, in addition to longer-term finance such as commercial mortgages.

Loans for individuals

There are basically two types of loans available to individuals: secured and unsecured. A personal loan, sometimes also referred to as an unsecured loan, allows people to borrow a smaller amount of money – usually up to £25,000 – which is repaid in monthly instalments over a set number of years. This is where you are not obliged to offer any collateral against the money you are borrowing. Instead, your ability to repay will be judged by your circumstances, income, current debts and credit rating among other factors.

You can also find a personal loan where you have a greater chance of being accepted by using a pre-approval loan service. This allows you to enter your details and, without impacting your credit file, see which lenders would be most likely to accept your loan application.

A secured loan allows people to borrow a larger sum of money – sometimes up to £1 million or more – which also must be paid back in monthly instalments. The key difference, however, is that the borrower has to secure an asset of high worth – normally their home – against the loan in order to borrow the money. If you fail to keep up with your secured loan repayments, the lender could repossess your property and sell it to recoup the monies you owe.

Loans for businesses

Businesses can also obtain loans on a non-secured or secured basis. A non-secured business loan operates by assessing the creditworthiness of the business and its ability to pay the loan back. Businesses in search of a secured loan may put up their commercial property or other assets against the value of their loan. If funds are needed quickly and for a short period of time, then a bridging loan may be an option – read more about five ways to use a bridging loan. A commercial mortgage is more suitable when finance is needed for a longer period of time – read more about the differences between commercial mortgages and bridging loans.

The interest rates for this business lending may vary depending on the sector you operate in, the credit history of your business and the assets you have available to secure your finance.

How to choose the best loan for you

There are many factors that need to be taken into consideration when choosing the best loan for you. An important decision you need to make is whether to choose a personal loan or a secured loan; this may come down to how much you want to borrow, but it’s also worth keeping in mind the risks associated with a secured loan. In addition to this, you need to consider how long you want to borrow the money for, and will also need to think about your credit score, which could impact whether or not you are approved for a loan as well as the interest rate you are charged. 

Where can I apply for a loan?

These days the market is full of lenders all vying for your loan business. These can be from the traditional high street banks through to the new digital-only providers, insurance companies, department stores and even your supermarket! If you are looking for a small loan, you may also find help from your local credit union.

How do I apply for a loan?

Most loan applications are pretty straightforward. You’ll be expected to provide your usual personal details and employment details, including your salary and how long you have worked there. You will also be asked what you plan to spend the loan on, as well as your monthly outgoings and details of any outstanding debts such as credit cards, mortgages, other loans or HPI payments.

It’s important to be honest and open – especially about any existing debts you have. Lenders ask for these details to ensure that you will be able to afford the loan repayments and to prevent you from increasing your debt level beyond your ability to repay what you owe.

For secured loans, you might find that the lender requests proof that you are the owner of the assets that you are securing against the loan. The process for obtaining a secured loan is similar to getting a mortgage, requiring in-depth checks and documentary evidence to support your application. In fact they are a form of regulated mortgage arrangement. You will have two mortgages secured against the property rather than the property secured against two mortgages.

Loan applications can be made in writing (using an application form from the lender) or online – with regards to electronic applications some lenders can give you an instant decision on whether you are loan has been accepted or needs to be looked at further.

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