Halifax Personal Loans Review: Pros, Cons & Features

Halifax personal loans: At a glance 

Halifax is one of the best performing lenders we’ve reviewed. It has a clear and efficient application process and offers some flexibility with your repayments.

The amount you can borrow from Halifax is fairly typical compared to other lenders but, unlike some others, you could apply for a loan and get the money in your account within a few hours. If you need it, you can also apply for a payment holiday during your loan term.

A downside with Halifax is that some potentially useful features are only available for customers with a Halifax current account. For example, existing customers could borrow double the amount of a non-customer, and you can only get a joint loan if both applicants have a Halifax account.

To help you compare deals, lenders are required to display the total cost of a loan as a percentage, known as the annual percentage rate (APR). This tells you how much a loan will cost you over one year, taking into account the interest rate and any standard fees. You should consider this, alongside other features of a loan, to decide if a loan is right for you.

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Halifax Personal Loan

• Representative APR
  6.6%
• Representative Example
  Representative APR 6.6%. Based on a loan of £10,000 over 48 months at an interest of 6.41% p.a. (fixed). Monthly repayments of £236.73. Total amount payable £11,363.04. Maximum APR 29.9%.
• Available amounts
  £1,000 to £50,000
• Available Terms
  1 to 7 years
• Joint Loans
  Yes

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Always check terms & conditions for suitability before applying.

Eligibility Criteria

• Must be aged 18 or over.
• Must live in the UK (excluding the Channel Islands and the Isle of Man).
• Must be in paid employment or have a regular income.
• Must not have a history of bad credit, such as bankruptcy or CCJs.
• Must have a Halifax current account to apply for up to £50,000, if not, the maximum amount is £25,000.

Learn more about how we bring you our review.

Halifax loans pros & cons

The pros and cons featured here are chosen by us based on a combination of our expert opinions from our research of the personal loans market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK in February 2023 to identify the features of personal loans that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and cons are subjective and you should align them to your own personal circumstances. Information was correct at the time of publication but may have changed since.

Halifax loans overview

Halifax is a major high-street bank with its roots stretching back to 1852. Now owned by  Lloyds Banking Group, Halifax offers current accounts, savings accounts, credit cards, mortgages, insurance and other products, as well as personal loans. 

Unlike some banks, you don’t need to have a current account with Halifax to be eligible to apply for a loan. Although existing customers can apply for a larger loan, non-customers can still apply for between £1,000 and £25,000 and could get the money in their account within a couple of hours.

Halifax loans offer some flexibility: you can make overpayments and, if needed, apply for a payment holiday. However, as is the case with many lenders, you will need to pay interest charges if you want to settle your loan in full before the end of the term.

How do we rate Halifax personal loans?

We’ve assessed a selection of UK loan providers and rated each against a set of criteria that take into consideration what loan customers tell us are the most important product features. 

Here’s what we review and how Halifax performs:

Nerdwallet’s star rating assessment criteria does not include the lender’s product lending rates or fees. Always check and compare a lender’s rates against others on the market when considering a loan.

Category definitions

Flexibility

A flexible loan gives customers a choice of funds, terms and payment options. That means offering a wide range of loan amounts and repayment term options, allowing the borrower to change their payment date and make overpayments, for example.

Application process

The best application processes are quick and easy, with clear eligibility criteria, soft checks and multiple ways to apply to suit different customers’ needs.

Available customer support 

Good customer support can include clear information on the lender’s website and a customer service team that’s available most of the time and can be reached in multiple ways.

Where Halifax personal loans stand out

Fast payout

Once your application is approved, Halifax says you should receive the loan in your bank account within two hours. This is the case for both existing Halifax customers and non-customers, unlike some banks that may take longer to send the funds to borrowers who aren’t existing customers.

Payment holidays available

Subject to approval, you may be able to apply for up to two repayment holidays in 12 months. These payment holidays last one month and interest will still be charged during this period, which means you will pay more interest overall.

Instant decision on your application

When you apply for a loan from Halifax, you could get a decision on your application straight away. However, if the bank needs some more information from you, it could take longer.

Where Halifax personal loans fall short

Lower loan amount for non-customers

While Halifax customers can apply for a loan of up to £50,000, non-customers can only apply for up to £25,000. So if you need to borrow more and you don’t have a Halifax account, another lender that offers larger loans may be more suitable. But you should only ever borrow the amount you need, so a limit of £25,000 shouldn’t be an issue if this is enough for your requirements.

Joint loans are not available to non-customers

Halifax allows you to apply for a loan with your partner, a family member or a friend, and you would both be equally responsible for repaying the loan in full. However, you can only get a joint loan if both applicants have had a Halifax current account for at least one month.

You can’t get a loan if you have bad credit

Halifax says that you won’t be eligible for any of its loans if you have a history of bad credit. It also won’t lend to you if you have applied for credit in the last month and been rejected, so think carefully before submitting any application. If your credit score is less than perfect, there are other lenders that would consider offering you a loan.

Loan features

The core features of a Halifax loan are fairly typical, if not spectacular when you compare it to other lenders.

You could borrow from £1,000 to £25,000, or up to £50,000 if you have a Halifax current account, and you can choose to repay the loan over a term of one to seven years.

This compares well with other lenders, particularly if you are a Halifax customer. But, if you don’t have a Halifax current account and you need to borrow a larger sum, you may be able to from another lender.

Halifax loans are unsecured, so you don’t need to be a homeowner or put forward any high-value asset as security.

You can use a Halifax loan for a variety of large purchases and activities, including holidays, weddings, a new car, emergency repairs and debt consolidation.

Joint loans

You can only apply for a joint loan from Halifax if both applicants have had a Halifax current account for at least one month, and if you both meet its other eligibility criteria. You can’t get a joint loan if you’re not an existing Halifax customer.

Bear in mind that both people named on a joint loan agreement are equally responsible for paying off the loan. If you both fail to make a payment, it will be recorded on both of your credit files.

Taking out a joint loan with someone means your credit reports are linked, which could affect any future credit applications.

Loan flexibility

Halifax offers a good level of flexibility when it comes to repaying your loan, but there are some better scoring lenders in this area. 

You can choose your payment date when you apply for a loan from Halifax, but if that date no longer works for you, it can be changed during the loan term. To change your repayment date, you will need to contact the Halifax team by phone or visit a branch. You can’t do this online.

Halifax also gives you the option of applying for a payment holiday during your loan term. You can apply for up to two holidays in a 12-month rolling period, with each payment holiday lasting one month. This could be helpful if you need a short break from making payments, although Halifax will need to approve your request for a payment holiday so you’re not guaranteed to get one. 

It’s important to bear in mind that taking a payment holiday will extend the term of your loan and means you will pay more in interest overall (as interest will continue to be charged during the payment break). So you should think carefully before applying for a payment holiday.

Extra repayments

Like many lenders, you can also make extra payments towards your Halifax loan at no extra cost. This won’t affect your usual monthly repayments and it means you can pay off your loan quicker. 

It’s always worth double-checking your loan agreement to see if there are any limits to the amount you can overpay.

If you want to pay off your loan in full, you need to get a settlement figure from Halifax, which could include up to 58 days’ interest. This charge is typical of many other lenders, but, depending on the amount left on your loan term, you could still save money on interest by settling your loan before the end of the term.

If you want to make an overpayment or pay off your loan early, you can do so online if you have a bank account with Halifax, or over the phone. 

Additional borrowing

It will count as a new loan application, but depending on your circumstances and as long as you pass Halifax’s affordability checks then, you may be able to borrow more if you already have a Halifax loan. You can do this in two ways.

You could take out a separate loan and keep your existing loan agreement in place. This means you will be making two different repayments on two separate loans.

Alternatively, you could take out a new loan that will pay off your existing loan and give you the extra money you require. This means you will just have one monthly repayment, but you will need to pay any early repayment charges to pay off your existing loan. Bear in mind that not all Halifax loan customers will be eligible to apply for this option. 

If your new loan has a higher interest rate or you extend the term, it will cost you more in the long term.

Application process

Halifax gets full marks for its application process because it’s easy for you to see if you qualify for a loan and you could get the money in your account relatively quickly.

The eligibility criteria are clearly displayed on its site, and you can also check your eligibility for a Halifax loan before submitting a formal application. This only involves a soft credit check that won’t appear on your credit file or affect your credit score. 

To check your eligibility, Halifax will need to know some key personal and financial details. Once you have given all the required information, Halifax will decide if you qualify for a loan and give you a quote.

If you choose to go ahead and apply for the loan, Halifax will run final checks, including a hard credit check. This will appear on your credit history and be visible to anyone else looking at your credit file.

You can apply for a Halifax loan online or by visiting a branch. Existing Halifax customers can also apply over the phone.

» MORE: Tips for applying for a loan

How long does it take to apply?

If you apply online, Halifax says it should only take a few minutes to check your eligibility and apply for a loan. It could take longer to get a decision if Halifax needs a few more details about your application and timings may differ if you apply in a branch or by phone.

Once approved, Halifax customers should get the money within a few minutes. For non-customers, you should receive the loan in your chosen bank account within two hours. Halifax says it could take longer in some cases, but no longer than three working days.

What information do I need?

To apply for a Halifax loan, you’ll need to provide information including your:

• name
• address
• date of birth
• income and expenses
• contact details
• bank account details

Halifax will also want to know:

• how much you want to borrow
• the repayment term you need to pay off the loan
• what you need the loan for

Availability of customer support

Halifax offers many different channels of customer support, but a more limited selection than some lenders.

You can contact the customer service team by phone or, if you prefer to deal with matters in person, you can visit a Halifax branch. You can also ask general queries on social channels such as X (formerly Twitter), although the team won’t be able to answer any specific questions about your loan agreement.

Halifax customers who have the mobile app can also use it to manage their account.

Customer ratings

Halifax has a 1.6 star rating on Trustpilot, based on more than 3,900 reviews.

The Halifax banking app has a 4.0 star rating on Google Play, based on over 218,000 reviews. On the App Store it has a 4.8 star rating based on over 1.5 million reviews.

Bear in mind that the Trustpilot rating and the app ratings are not just for Halifax’s personal loan product.

Review site Fairer Finance does provide a rating specifically for personal loans from Halifax. It places in the top 10 of the lenders included in the ranking, with a customer experience rating of 65%.

This information is correct as of 13 September 2023.

Am I eligible for a Halifax loan?

You can apply for a loan from Halifax whether you have a current account with the bank or not. But, to be considered for a loan, you need to meet the basic eligibility criteria below:

• You are aged 18 or over.
• You need to be a UK resident (excludes Isle of Man and Channel Islands residents).
• You must have a regular income.
• You need to have a decent credit history, with no county court judgments (CCJs) or bankruptcies.
• You must not have had any credit applications declined in the last month.
• You can’t be a full-time student.

Even if you meet these criteria, you are not guaranteed to be approved for a loan. When you apply for a loan, Halifax will run credit and affordability checks to make sure that you can afford to repay the loan in full.

About the Author

Rhiannon Philps

Rhiannon has been writing about personal finance for over three years, specialising in energy, motoring, credit cards and lending. After graduating from the University of Cambridge with a degree in…

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