Sourcing the right personal loan to suit your circumstances isn’t always straightforward. One of the biggest difficulties is that there are more than 70 categories of lenders offering personal loans in the UK; these may range from the traditional large banks and building societies to online and post office lenders. Read our guide for some helpful tips.
As always, compare a variety of loans first by shopping around to get the best price.
Whether you are looking for a personal loans, a debt consolidation loan or any other type of borrowing, let FreePriceCompare help you.
The most common personal loan providers in the UK
The biggest single advantage of going through an online source is that overheads are lower and this is reflected in their lower rates of interest.
A bonus of online banking and borrowing is that you can manage your loan from overseas
In addition to being able to bank online, you can call the company and speak with an advisor if you have any questions or difficulties.
High street banks and building societies
It is still a popular route to choose a known high street lender such as one of the big banks; for some, the familiarity of tradition often overtakes price comparisons. With a branch in most large UK towns, it is convenient and easy to meet someone face to face with whom you can liaise; you can build a relationship and have someone to turn to for advice should you encounter problems. The downside is that interest from these bigger lenders is likely to be higher than the online only option.
Borrowing and lending exchanges
These type of exchanges offer reduced cost personal loans; by cutting out the extra staffing costs associated with high street lenders, they can act a little like a co-operative. Lending and borrowing becomes a smooth and steady transactional process, with a legally binding contract between the respective parties.
The amounts which are borrowed or loaned are spread between approximately 50 borrowers and lenders which helps further reduce risk.
The collection of monthly repayments is handled by the exchange; as with high street lenders, the usual recovery practice is applied if the borrower defaults on payment.
Supermarkets, shops and post offices
You can now drop into your local supermarket, post office or shop and easily acquire a loan. This has become a favourable way of borrowing because you can fit it into your usual weekday shop and there are some good financial products on offer.
At FreePriceCompare, we can guide you through the UK loans market, eliminating the worry. By telling us a few simple details, sourcing the most appropriate UK personal loan for you becomes our hard work, not yours.
We offer an impartial personal loans comparison service, giving you the most up to date listings of available loan products.