Personal Loans

With a personal loan, you could benefit from fixed low rates for the term of the loan

Proper Finance works with the best personal loan companies in the country to offer competitive rates for its customers. As an award-winning broker, we have a passion for helping customers find the right product for them and at the right price. Simply complete our online application form and our team will assist you with a personalised quote and help you every step of the way.

Apply Now

 

Personal Loans – How Do They Work?

Personal loans are unsecured, meaning that they are not secured against your property like your home or car. If you are interested in borrowing against your property, you’ll have to take out a secured loan. This is a type of homeowner loan, where your property (or other secured, valuable asset) is used as collateral if you default on the loan.

Customers can borrow sums ranging from £1,000 to £35,000 and repaid over 1 to 7 years. The benefit of a personal loan is that you typically have fixed repayments every month so you know exactly what you are paying, and can therefore budget effectively.

It is not common for monthly payments to be variable, so the rate you pay should remain the same over the loan term.

With a minimum period of 12 months, it may encourage you to borrow for longer than you need. Personal loans will also charge lower interest rates the longer you keep your loan open for, which can tempt you into borrowing a larger amount.

You can make overpayments or pay the loan in full or part at any time. Depending on the lender, you may not have to pay any early redemption fees.

 

Why Would I Need a Personal Loan?

As the name “personal” loan suggests, these are often used to fund various different areas of your lifestyle, such as home improvements, consolidating debts, weddings or car purchases.

You can use a personal loan to finance a variety of different things. Many use them to pay for unexpected emergencies, such as a broken boiler, or taking the car to the garage.

A lot of people also use them as an alternative to payday loans, using them to make ends meet before payday arrives.

Since personal loans are made for an individual, this type of finance cannot be used to purchase property, or on behalf of a business.

When paid back on time, personal loans can be incredibly helpful, giving people access to the funds they need when they need it.

 

What Is the Criteria for a Personal Loan?

To apply for a personal loan, you need to be able to say yes to the following 3 statements:

  • I am over 18 years of age
  • My income is over £15,000 per annum
  • I have a good credit history

Since you are not putting down anything valuable as collateral, your loan acceptance is based on your consistency of your regular income and credit history. Someone who is considered creditworthy will have a good record of paying other credit cards and loan repayments on time and have a healthy loan-to-debt ratio.

Things that will risk your chances of acceptance including being unemployed and having a history of defaults, CCJs and bankruptcy.

Apply Now

How Much Can I Borrow With a Personal Loan?

  • Personal Loans from £1,000 to £35,000
  • Loan terms from 1 – 7 Years
  • 1 – 2 Year loans variable rate
  • 3 – 5 Year loans fixed rate
  • Loans also available in Northern Ireland

The amount you can borrow will depend on your monthly income, credit history and outstanding debt. Personal loan companies will carry out affordability checks to match the amount you wish to borrow and what you can afford to repay, allowing you to borrow a sum without falling into financial difficulty.

The highest borrowing facilities will be available to those with higher incomes, strong credit histories and those with good affordability.

The representative APR for a personal loan can range from 2.7% to 6.7% – with the lowest amounts reserved for the best credit scores and the longer the loan term.

It is noted that the representative APR advertised is available to 51% of successful applicants and the rate you receive may vary slightly.

 

What Information Do I Need to Apply for a Personal Loan?

To apply for a personal loan with Proper Finance, you will have to provide a few details about yourself. These details can include:

  • Your name
  • Your date of birth
  • Your current home address
  • Contact details
  • The amount of loan you are applying for
  • How long you want the loan period to be

Depending on the type of loan you are applying for, the information we require from you may vary. For a personal loan, as it is an unsecured loan, we may also require details of your income, your employment and more.

With unsecured loans, borrowers will have to provide the lenders with security that the loan will be paid back. This can be done in numerous ways, e.g. showing a good credit history, being a homeowner, or having a stable and regular income.

 

What Are the Benefits of a Personal Loan?

Personal loans can come with many different benefits. They are a way of accessing finance without having the risk of losing your car, home, or other valuable asset that would be used as collateral on a secured loan.

As previously mentioned, personal loans can also be used for numerous different circumstances – whether you’re wanting to consolidate your debt, make home improvements, pay for a wedding or make a car purchase.

Some of the other benefits to be had with a personal loan include the following:

  • Low rates for those who have good credit
  • You do not need to own a house 
  • Quick and easy online application
  • No fees charged for applying

Whilst you don’t have to be a homeowner to take out a personal loan, it may help to lower rates for the loan, along with having a good credit rating.

 

Apply for a Personal Loan With Proper Finance

Proper Finance has been trading successfully for over 12 years and has built up an excellent relationship with some of the best personal loan providers in the UK.

Our team of dedicated advisors are on hand to assist with your personal loan. You can start by completing our online application which just takes a few minutes. You will receive a decision very quickly and a member of staff will contact you to help you proceed with the final steps.

If you do not meet the criteria, we will gladly look at alternative financial products and assist you every step of the way to help you get the finance you need.

Apply Now