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£25000 Loans

How to find the right £25,000 loan

If you're looking for a bigger loan, a £25,000 loan may suit you. Our guide covers what you'll need to consider when taking out a 25k loan, how to check if you're eligible and the types of loans available to you

By Lucy Hancock

Published: 07 May 2021

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Comparing £25k Loans

If you’re looking to borrow a larger sum of money, a £25k loan can be a good way to spread out the cost. Whether you’re looking to fund the cost of a carhome improvements or even to consolidate your debt, comparing £25k loans can help you work out what you can afford and find an interest rate that suits you.

Taking out a loan can feel like a big decision, which is why our guide is here to make things feel more straightforward. We can help you compare your options, from providers to interest rates, so you can find the right deal for your needs. 

Can I get a loan for £25k?

While a 25k loan is a larger amount to borrow, you should be able to take out a loan if you meet the lender’s eligibility criteria.

Lenders will look at your credit history to work out if you are a reliable borrower, so it may be worthwhile to check your credit score beforehand. A £25,000 loan is at the larger end of the scale, with smaller loans being seen as anything from £500 to £2,000, so it is a bigger responsibility to take on. 

Use our loan calculator to work out how much the loan repayments will cost each month at the interest rates on offer. A higher interest rate will mean the loan will cost you more each month so think carefully about whether it is affordable.

What types of loan offer £25k?

There are different types of loans available that offer £25k, including:

Personal loans

Personal loans, sometimes called unsecured loans, allow you to cover one-off expenses upfront and are a way to rebuild your credit score. They’re generally unsecured, so you’re not putting your possessions up as collateral. They can also be used to consolidate any debt you may have into one monthly repayment. The limit of what you can borrow is generally up to £25k.

Secured Loans

Secured loans are an alternative to a personal loan and are tied to collateral (putting your valuable possessions on the line, to prove to the lender that you’re serious about paying it back). They tend to offer better interest rates than other loans but do come with the risk of losing your possessions if you can’t pay the money back. If you’re looking to take out a loan against your property, this involves using your home as collateral instead of taking out a personal loan or using your credit card.

 

Take a look at our guide for more information on the differences between unsecured and secured loans

How much will a £25k loan cost?

It’s important to work out the total cost of taking out a £25,000 loan, including whether you can afford the monthly repayments.

Calculating the total cost of a £25k loan means working out the ‘true cost of borrowing.’ This means the total amount you’ll need to pay back to the lender, including:

  • The loan amount (in this case £25,000)

  • Any fees

  • How often your repayments are (monthly is common)

  • The length of time you're borrowing for, known as the ‘term’

  • The interest rate you’ll be charged

 

Our loans calculator can help you work out how much you can afford to borrow, factoring in the APR interest rate and the term you’re looking to borrow for.

 

Are there any fees associated with a £25000 loan?

Some banks or building societies may charge extra fees when borrowing a £25000 loan, so it’s important to check this with your lender. Any fees and how they’re calculated should be listed in your loan agreement, so you know exactly what you’re expected to repay.

Some potential fees associated with a £25,000 loan include:

  • Arrangement fee: You may be charged an administration fee by some lenders for arranging a personal loan
  • Late repayment fee: If you miss a repayment, you may be charged interest on the amount that’s overdue
  • Early repayment fee: If you choose to pay back more than your fixed monthly repayment amount, you may be charged a fee. But some lenders advertise that you won’t be charged an ERC (Early Repayment Charge), so be sure to check this 

Can I get a £25k loan with bad credit?

If you have a poor credit history and are looking to get a £25k loan, your loan options may be limited. When deciding if you’re eligible for a loan, lenders will look at your credit score, to check if you’re a reliable borrower. If you’ve struggled to repay loans or your credit card bill in the past, this will show up on your credit file and you’ll struggle to be accepted for borrowing in the future. 

If you have bad credit, you may be offered a secured loan if you own a house, using your property as collateral. Alternatively, you may be offered a guarantor loan which are designed for borrowers with bad credit which are guaranteed by a family member or close friend who becomes liable for the loan if you are unable to make the repayments.

At MoneySuperMarket, we conduct a soft search which will show the likelihood of you being accepted for a loan without harming your credit score. We also cover how to improve your credit score and improve your chances of loan acceptance.

Can I repay my £25k loan early?


Depending on your lender, you should be able to repay your loan early but may face an early repayment charge (ERC). To work out how much you’ll need to pay to repay your loan in full, you can ask your lender for an early settlement amount. This will cover:

  • What you have paid off so far
  • How much money you have left to repay
  • Interest charges you’ll have to pay
  • Any early repayment charges (ERCs) 

After receiving your early resettlement amount, you’ll be given 28 days to decide if you want to go ahead with early repayment. Only want to make a partial overpayment? You’ll need to check with your lender if you can do this as it will depend on the type of loan you have, when you took it out and the agreement you signed with your lender. 

How to apply for a £25000 loan with MoneySuperMarket

Applying for a loan can feel like a guessing game – it’s hard to know whether you’ll be accepted and what deal you’ll be offered. But by comparing loans with MoneySuperMarket, it’s a quicker and easier process.  We compare hundreds of loans from a wide range of lenders using a soft search, meaning your credit score won’t be affected. For each loan, we'll show you your chances of being accepted and if you're pre-approved for a loan, you know that if you apply, you’ll be accepted. The loan amount, duration and interest rate are all confirmed.

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.

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