Unsecured loan
You don’t need to put down any assets as security, but you might need a strong credit score to get the best deals and lowest interest rates
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Long term loans
FIND THE RIGHT LONG TERM LOAN FOR YOU
It’s quick and easy
See all the loans you’re eligible for in one place. This includes the interest rate you’ll be charged and how much the monthly repayments will be, plus your chances of being accepted.
It won’t harm your credit score
We’ll run a ‘soft search’ on your finances to show you your chances of being accepted for a loan – without it leaving a mark on your credit rating.
Apply today
Once you’ve compared long term loans and decided which one is most suitable, click through to the lender to make your application straightaway.
What type of long term loan can I get?
Different types of loans are available to suit different borrowers. Which loan you can get will depend on your financial situation and credit score.
Secured loan
Using a valuable asset such as your home as security might mean you can borrow more and at a lower interest rate, but your home will be at risk if you can’t keep up with repayments
How do long term 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
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
What are the advantages and disadvantages of a long term loan?
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...
Lower monthly repayments
Because the length of the loan is longer, your regular repayments are often lower – giving you more disposable income every month
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
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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
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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
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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
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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
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.
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
Can I pay back a long term loan early?
Do long term loans have higher interest rates?
What do I need to apply for a long term loan in the UK?
Will the interest rate be fixed for the whole term?
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.
Guide to getting a loan with bad credit
You might find it tricky to get a loan if you have a muddled credit history - so what are you options?
Unsecured vs secured loans
It's important to know the difference between secured and unsecured loans before making any application
A guide to financial jargon
Our glossary will help you to understand the range of financial jargon surrounding these products
Guide to car loans
Discover how getting a loan can offer you an alternative to dealer finance
Loans for young people
Tips for finding the right loan if you’re a student, or need your first loan
Guide to home improvement loans
Find out about borrowing to upgrade or extend your family home
Get Credit Savvy
How to secure the best card or loan deal in a lending squeeze
No Credit Check Loans
Can you get a loan without a credit check?
Emergency Loans
Need a loan in a hurry? Make sure you're fully informed with our guide to emergency loans
Short term bad credit loans
If you’ve struggled with bad credit in the past but need money quickly, you may be worried about being rejected for a loan. Our guide covers how short term loans work and if you can get one with a low credit score... If you need money quickly but are worried you’ll be turned down for borrowing, our guide might be able to help
Quick payout loans
Being able to get money quickly with few credit checks may seem appealing to potential borrowers, but with high interest rates and the amount you can borrow being capped, they won’t be for everyone. Our guide covers how quick payout loans work and what you need to know
Guaranteed acceptance loans
Is there a way of guaranteeing a successful loan application? If not, how do you maximise your chances of being approved? Our guide explains
Bridging loans guide
A bridge loan can be a good solution for short-term borrowing. Our guide covers how bridge loans work so you can decide if they’re the right choice for you
Secured loans guide
Secured loans can be a way to borrow more, by using your home (or other valuable asset) as security. Understand how secured loans work in our guide with pros and cons to consider.
Unsecured loan guide
Secured loans can be a way to borrow more, by using your home (or other valuable asset) as security. Understand how secured loans work in our guide with pros and cons to consider.
Cheap loans guide
The cheapest loan is not always the one with the lowest monthly repayments. Find out more with this guide.
What is PCP car finance?
Personal contract purchase plans, otherwise known as PCP have become a popular alternative to buying a car outright. Our guide covers how PCP works, to help you decide if it’s the right financing option for you
What is hire purchase?
HP is a form of car finance where you pay a deposit and monthly instalments for a fixed term before you own the vehicle. Our guide explains more
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