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Long term loans
Find the right long term loan for you
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Compare loans from 52^ lenders, right across the market
We do the heavy lifting, so you don't have to. We work with a range of leading providers to help you borrow the money you need.
What is a long term loan?
A long-term loan is a way of borrowing that gives you a large sum of money upfront. You then pay off the loan plus interest in regular monthly instalments over an agreed length of time.
A long-term loan can be secured against a valuable asset, such as your house. But it is also possible to borrow over a longer time frame with an unsecured loan. The loan deal you’re offered will depend on your financial situation and credit score.
How do long term loans work?
Decide how much you need. Lenders will typically offer up to £15,000 on an unsecured loan. If you need to borrow more there are secured loans available.
Choose the best deal for you. A longer-term loan will mean lower monthly repayments, but you will end up paying more interest overall.
Receive the money in your account. The loan will be paid directly into your bank account and your monthly repayments will usually begin straightaway too.
Make monthly repayments. You’ll make a fixed number of monthly payments until your loan is cleared. You can choose to pay it off early, but beware early repayment charges.
Use our handy loans calculator
Loan calculator
Find out what monthly repayments would be, how much you'll pay overall and how much you could borrow.
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Based on the information you supplied, you would be borrowing XXX and repaying the loan in XXX monthly instalments of . The total sum to repay, subject to XXX% APR over the full loan term would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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Based on the information you supplied, you could borrow XXX at a monthly repayment rate of to be paid over XXX monthly instalments. Over the full loan term at XXX% APR, the total amount repayable would be XXX. This assumes there are no extra fees and that your payments are made on time and in full.
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The maximum personal loan is £50,000
If you need a larger amount, consider a secured loan, which will allow you to borrow more but uses your home as collateral. Be aware that lenders can sell your house if you fail to keep up with repayments.
What can I use a long term loan for?
A long term loan could be used for several reasons, including:
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Home improvements
Pay for upgrades like new flooring or appliances
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Debt consolidation
Combine existing debts into one monthly payment
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Car repairs
Cover the cost of unexpected maintenance or MOTs
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Emergency expenses
Cover urgent bills like medical or vet costs
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Weddings or events
Help manage the cost of a special occasion
What do I need to consider before taking out a loan?
What will be the overall cost?
Longer loan terms usually mean lower monthly payments, but you’ll pay more interest overall. Always check the total repayable amount to understand the true cost of borrowing.
Is the interest rate competitive?
The APR includes both the interest rate and any additional fees. Even a small difference in rate can add up over the life of a long-term loan.
Can I afford the repayments?
Make sure the repayments fit comfortably into your budget each month. Missing payments could affect your credit score and result in extra charges.
Can I repay the loan early if I want to?
Some lenders let you repay your loan early, but check for penalties. Being able to clear the debt ahead of schedule could save you money on interest. Our guide helps you decide whether it’s a good idea to pay off your loan early.
Why am I borrowing – and is it worth it?
Only borrow what you need and for a clear, planned reason – like home improvements or consolidating debt. Taking on long-term borrowing for short-term spending can lead to financial strain.
How much can I borrow?
The amount you can borrow with a long term loan typically ranges from £1,000 to £25,000 – or even more with some lenders. The final amount depends on your credit score, income, and overall financial situation.
Lenders will also look at your ability to afford the monthly repayments over the full term. If you have a strong credit history and steady income, you may be offered higher amounts at more competitive rates.
How quickly will I be approved?
Approval for a long term loan can be very fast and many lenders offer instant or same day decisions when you apply online. If you're approved, the money could be in your account within 24 to 48 hours, depending on the lender and time of application.
What's the repayment period?
Long term loans typically come with repayment periods ranging from 12 months to 10 years, depending on the lender and how much you borrow. A longer term usually means lower monthly payments, but you’ll pay more interest overall – so it’s important to find a balance that works for your budget.
What are the pros and cons of long term loans?
There are a range of pros and cons to consider when applying for a long term loan. Here are some advantages and disadvantages to think about:
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Pros
Lower monthly repayments: Because the length of the loan is longer, your regular repayments are often lower
Boost your credit score: Paying off a long term loan can show lenders that you can borrow responsibly
Lower interest rates: Long term borrowing often comes at lower interest rates than shorter term loans
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Cons
You’ll pay more overall: You’ll pay a greater amount in total interest because the loan is paid back over a longer period
Hard to borrow with poor credit: You may not be able to borrow a large loan, or you will face paying higher interest
Penalties if you default: If you fall behind with repayments, you may face extra charges and see your credit rating damaged
Are interest rates higher for long term loans?
No, interest rates tend to be lower for long term loans, although because you face making repayments over a longer period you may pay more in total interest.
MoneySuperMarket data shows that the average APR for loans between £1,000 - £3,000 is 38.6% and that this drops to 8.4% for loans over £20,000.
With higher value loans also having longer terms, it follows that interest rates are typically lower for long term loans too.
However, each case is different. Lenders all have their own criteria and decide on loan offers depending on individual personal circumstances.
Will base rate cuts make loans cheaper?
The base rate was reduced to 4% by the Bank of England in August, which could signal good news for anyone looking to take on a loan.
When the base rate is reduced, lenders often lower their Annual Percentage Rates (APRs) on loans, making borrowing more affordable.
However, not all lenders adjust their rates at the same pace. Some may quickly pass on the savings to borrowers, while others may delay or make smaller adjustments.
Therefore, it's important to compare loan offers for long term loans from different lenders to ensure you benefit from the most competitive APRs in the market.
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Am I eligible for a long term loan?
To be eligible for a long term loan, lenders will want to ensure that:
You’re at least 18 (some ask for 21+)
You live in the UK with a permanent address
You have regular income from work or benefits
You can show you can afford the repayments
You have a good credit history (though some lenders accept lower scores)
You have a UK bank account and ID
You’ll also need to say what the loan is for – most personal loans cover things like home improvements or consolidating debt.
Finally, meeting the above doesn’t guarantee approval, as each lender decides based on their own checks.
Can I get a long term loan if I have bad credit?
It’s possible to get a long term loan with bad credit, but you might find:
Interest rates are higher
The amount you can borrow is lower
There are fewer loan deals to choose from
If you have a low credit score, the loan types that could be most suitable include:
Guarantor loans: A family member or loved one acts as a guarantor and is liable to repay the debt should you default
Secured loans: The lender is more willing to lend because they can take your house as security in the event you can’t repay what you owe
Bad credit loans: Specialist lenders offer loans to those with poor credit ratings. But expect interest rates to be higher and loan amounts smaller
How to choose the best long term loan
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Don’t borrow more than you need
Work out exactly how much you need to borrow. Every extra pound will add interest and push up the overall cost of the loan
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Look for a low interest rate
Not the only consideration, but the lower the interest rate you can get, the less you’ll have to pay back in total
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Check the terms and conditions
Understand what happens if you’re late with a payment or you want to pay the loan off early before you sign up for any deal
Is a long term loan right for me?
It could be if you need to cover costs like home improvements or consolidating debts and want smaller monthly payments and more time to pay it back.
But it’s not a commitment to take lightly. Longer terms usually mean paying more interest overall and you’ll be in debt for longer, too.
Should I get one for debt consolidation?
A long term loan can be a smart move if it helps you:
Combine multiple debts into one simple monthly payment
Lower your interest rate or monthly costs
Stay on top of your finances
But stretching repayments over a longer time might mean you pay more overall, and if you don’t stop using credit cards or overdrafts, you could end up with more debt.
What are the alternatives to borrowing over a long period?
If you don’t want to borrow through a long term loan, then other options to consider might include:
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Credit Cards
Generally suit shorter-term borrowing, but many credit cards offer low or 0% interest on balance transfers or purchases for a time. Aim to clear your card balance before the end of the 0% interest period.
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Agreed overdraft
An overdraft on your current account should be viewed as a short-term solution, but it may be possible to get an authorised overdraft at 0% interest which could be a convenient way to borrow.
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Borrow from friends or family
You could reach out to friends and family for financial help, but be cautious because relationships can become strained. There are also tax rules over gifting – if you accept a lump sum from a family member, for example.
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Save up!
While it might not feel like the best solution if you need money quickly, saving up can be rewarding – and cost-effective. Saving can build better financial habits and you'll also avoid loan interest repayments.
Our expert says…
If you take out a loan over a longer period of time, you’ll have lower monthly payments to make, but you’ll end up paying more in total.
For example, borrowing £10,000 over 12 months at 8% interest will mean an overall loan cost of £10,423, but extend the term to five years and it increases to £12,086 – even though monthly repayments are much lower. Therefore, before you apply, look at all the factors and calculate what you need and what you can afford.
Kara Gammell Personal Finance & Insurance Expert
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How to compare long term loans with MoneySuperMarket
Find the right loan for you and see which deals you’re pre-approved for.
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Compare deals fast
Tell us a little about you, your current finances and type of loan you want
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We’ll search the market
We’ll sift through deals from our panel of lenders to find those most suitable to your needs
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Choose your deal
You can sort loans by the overall cost and your chances of being accepted
Can I pay back a long term loan early?
Yes, you can pay back a long term loan early, but you might face an early repayment charge to clear the debt. Always check the loan terms and conditions before you sign-up – particularly if you think you might be in position to pay it off before the end of the term.
Will the interest rate be fixed for the whole term?
Most long-term unsecured and secured loans will have a fixed interest rate for the whole term. This is not always the case though so understand how your interest rate or APR works before you sign up.
Do I need a guarantor for a long term loan?
Not usually. Most long-term loans don’t need a guarantor if you have good credit and steady income. But if your credit score is low or you’re new to borrowing, some lenders may ask for one to boost your chances of approval.
Do long term loans require a credit check?
Yes. Reputable lenders will run a credit check to see how you’ve handled money before. It helps them decide if they’ll lend to you and on what terms.
What happens if I miss a loan repayment?
Missing a repayment can lead to late fees, damage your credit score, and make it harder to borrow in the future. If you're struggling, contact your lender as soon as possible – they may offer support or a revised payment plan.
Can I change my repayment date?
Some lenders allow you to change your repayment date to better suit your payday or monthly budget. This usually needs to be arranged in advance, so check with your lender before your next payment is due.
Will applying for a long term loan affect my credit score?
Using a soft search or eligibility checker won’t affect your credit score. But if you go ahead with a full application, the lender will run a hard credit check. This may leave a mark on your credit report and slightly lower your score in the short term.
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Lenders
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Reviewed on 10 Dec 2025 by
