APR stands for Annual Percentage Rate and is the percentage of interest you’ll pay on a loan over a year once the interest rate and any other charges such as arrangement fee or annual fee have been factored in. APRs try to help potential borrowers compare different deals on loans, mortgages and credit cards. The only difference from a standard interest rate is that fees are included in the calculation. Therefore, a loan’s APR will be higher than its interest rate if the deal has any fees attached.  

A soft search is a way of running a check on your finances to see what deals you might be suitable for without leaving a mark on your credit score. Too many credit applications in a short period can have a negative impact on your credit rating making borrowing more difficult in the future. A soft search can show you your chances of being accepted for any deal along with any loans you’re already pre-approved for. This means you can apply in confidence for the deal you want. 

There are various ways you could use a £50k loan. A popular use is for home improvements, which might be seen as an investment in your property’s value. Another option could be to consolidate existing debts, giving you the opportunity to clear what you owe elsewhere and then pay back the £50k loan in a series of affordable monthly repayments at a lower rate of interest than you were previously paying.

Each lender has different criteria to decide whether to accept a borrower for a £50k loan. But the higher your credit score, the better your chance of approval and at lower interest rates. Our guide to What is a good credit score? provides more information.

You will be able to pay off your £50,000 loan early, but you should factor in any early repayment charges first before deciding. Information on any early repayment charges will be in the conditions when you sign up for the loan, so take note of these before you apply – particularly if you think there is a chance you may be able to clear it early.   

Once approved, you should receive your money in a few working days. Each lender has different terms for how quickly they release the funds.

If you can’t make the repayments on your loan contact your lender as soon as possible. It should help you work out a solution, such as a short-term payment holiday (although you’ll still accrue interest) or restructuring your loan to make it more affordable.

If you miss a repayment you’re likely to be hit with late fees and extra interest – and it could damage your credit score – so try to avoid this if at all possible by talking to your lender as soon as you realise you could have problems. This is particularly important if you have a secured loan, because you could be in danger of losing your home if you have repayment problems and you don’t talk to your lender.