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Long term loans



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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.

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Why compare loans with MoneySuperMarket?

It’s simple to compare loans with us, and we’ll show you your chance of being approved for each loan deal.

  • It’s quick and easy

    We’ll provide you with all the key information upfront so you can pick the right deal for you

  • Protect your credit score

    Don’t worry, searching with us won’t affect your credit score and we’ll show you your chances of being accepted upfront

  • Apply in minutes

    Once you’ve made your choice, click through to the loan provider to apply

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.

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How do long term personal loans work?

  • Decide how much you need

    Lenders will typically offer up to £15,000 on an unsecured personal loan. If you need to borrow more than this there are secured loans available where the debt is secured against your home.

  • Choose the best deal for you

    You need a loan to be affordable and a longer-term loan will mean lower monthly repayments. But you will end up paying more interest overall, so factor this in before making your decision.

  • Receive the money in your account

    The loan will be paid directly into your bank account so you can start using the money immediately. Your monthly repayments will usually begin straightaway too.

  • Make monthly repayments

    You’ll make a fixed number of monthly payments at the same time each month until your loan is cleared. You can choose to pay it off early, but watch out for any early repayment charges.

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:

  • Tick

    Lower monthly repayments

    Because the length of the loan is longer, your regular repayments are often lower – giving you more disposable income every month

  • Cross

    You’ll pay more overall

    While monthly repayments may be lower, you’ll pay a greater amount in total interest because the loan is paid back over a longer period

  • Tick

    Boost your credit score

    Taking out a long term loan can show lenders that you can borrow responsibly, which helps build your credit rating over time

  • Cross

    Hard to borrow with poor credit

    It may be tougher to get a long term loan if you have bad credit. You may not be able to borrow a large loan, or you have to pay higher interest 

  • Tick

    Lower interest rates

    Long term borrowing often comes at lower interest rates than shorter term loans. You may be offered lowest rates on a secured loan, but you’ll need to use your home as security

  • Cross

    Penalties if you default

    If you fall behind with repayments, you may face extra charges and see your credit rating damaged. If the loan is secured against property, your home is at risk if you default

With a pre-approved loan, the deal you see is the deal you get

When you apply for a long term loan, it’s not always clear what deal you’ll be offered and whether you’ll be accepted. But when you’re pre-approved for a loan, you know the deal you see is the deal you’ll get – and you have the information to make the right choice.

  • Apply with confidence

    If you’re pre-approved, the loan amount, interest rate and duration of the loan will be confirmed – providing the information you have supplied is correct

  • Tailored to you

    When you know what you’ll be able to borrow and how You’ll be pre-approved for a long-term loan based on your credit score and finances, so all the results you see are tailored to youmuch it will cost, you can choose a loan that’s right for you

  • You’re in safe hands

    With a pre-approved loan, you don’t need to worry about being turned down and searching and comparing won’t harm your credit score

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 much higher and loan amounts will be small. 

Read our expert tips on improving your credit rating.

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How to choose the best long term loan

  • 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

  • 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

  • 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

What are the alternatives to borrowing over a long period of time?

If you don’t want to borrow through a long term loan, then other options to consider might include:

  • Credit Cards

    Credit cards generally suit shorter-term borrowing. But many credit cards offer low or 0% interest on balance transfers or purchases for a time, which could be attractive. Aim to clear your card balance before the end of the 0% interest period.

  • 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 short term. Be careful though, as some agreed overdrafts can be expensive.

  • Borrow from friends or family

    You could reach out to friends and family for financial help. But it should be approached cautiously because relationships can become strained. There are also tax rules over gifting – if you accept a lump sum from a family member, for example.

  • Save up!

    While it might not feel like the best solution if you need money quickly, saving up gradually for what you need can be rewarding – and cost-effective. Saving can build better financial habits and you'll also avoid loan interest repayments.

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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.

  • Compare deals fast

    Tell us a little about you, your current finances and type of loan you want

  • We’ll search the market

    We’ll sift through deals from our panel of lenders to find those most suitable to your needs

  • Choose your deal

    You can sort loans by the overall cost and your chances of being accepted 

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.

The interest rate you’re offered will depend on a range of factors including your finances and credit rating. For comparable amounts long term loans may have lower interest rates than short term borrowing because there is a perceived lower risk to the lender. 

You’ll need proof of name, age and address in the UK. You’ll also need to share some financial details with the lender so they can evaluate your application and be confident you can afford the repayments.

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 be sure how your interest rate or APR works before you sign up.

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