Compare Unsecured £25,000 Loans

What type of £25,000 loan can I get?

£25,000 unsecured or secured loans are available from different types of lenders, including high street, challenger banks, peer to peer lenders and credit unions.

Unsecured loans are personal loans where you don’t need to use an asset as security. This might be useful if you aren’t a homeowner, or if you’d just rather not put your assets at risk. You pay the loan back, usually at a set rate of interest, in monthly instalments over a specific period of time. If you can’t repay the loan, your credit history will be affected and it could lead to the lender taking court action.

A secured loan is where you use a high-value asset, usually a home, as security for borrowing. Secured loans are usually available for higher loan amounts than unsecured loans and often offer lower interest rates. If you are unable to meet repayments, the lender may repossess that asset to recover the money owed. This lowers the risk for lenders, but puts your home or other asset at risk of repossession if you default on payments.

» COMPARE: Personal loans

Is it hard to get a £25,000 unsecured loan?

A £25,000 loan is usually the largest amount lenders will offer without security. This means that an unsecured loan for £25,000 may be harder to get than a loan for a smaller amount.

Lenders will look at your credit score and your finances before deciding if they will lend to you. With no collateral used for the loan, the lender will look at your credit history and current outgoings to assess the risk of lending to you and the likelihood you’ll meet repayments. Unsecured loans pose a higher risk to lenders than secured loans, so you usually pay higher rates of interest and will need to have a good credit score.

It is possible to get a loan with a bad credit history, but you may find that some lenders won’t offer as much as £25,000 to you without security. However, there are specialist lenders who will lend to borrowers with a bad credit history.

» MORE: Learn more about secured and unsecured loans

How do I get a £25,000 loan with bad credit?

If you have a bad credit score, it will usually be harder to get an unsecured loan. This may especially be the case if you’re applying for the maximum amount. Some lenders also require that you haven’t had a county court judgment (CCJ) or been in bankruptcy for a specific number of years.

However, some lenders specialise in offering loans to people who have a poor credit score or a limited credit history. This can include secured loans, guarantor loans, bad credit unsecured loans and debt consolidation loans. Taking out a bad credit loan can help improve your credit score by showing you can manage debt, provided you make repayments in full and on time.

When you’re looking for a bad credit loan, check the annual percentage rate (APR), the available loan amount, length of loan terms, and the monthly repayment. You will pay higher interest rates than if you had a good credit history and will usually need to have a regular income and, as with any loan, be able to afford repayments.

» COMPARE: Bad credit loans

How much are the monthly payments on a £25,000 unsecured loan?

The cost of an unsecured loan depends on the interest rate the lender charges and how long your loan term is. The longer you spread the costs over, the lower the repayments will be, but you’ll pay more interest.

You can see how it works with this example, which compares spreading the cost of a £25,000 loan with a fixed annual interest rate of 3.5%, over three different terms:

Loan term	Monthly payment	Total amount paid	Total interest and fees paid
Two years	£1,080.07	£25,921.63	£921.63
Five years	£454.79	£27,287.62	£2,287.62
10 years	£247.21	£29,665.76	£4,665.76

If you use online calculators before applying, you might use the annual percentage rate (APR). This is how much it costs to borrow over one year and includes interest charged and any other fees and charges for most borrowers.

However, if you use the representative APR, it’s important to note that this is an advertised rate which can only be shown by a lender if 51% of applicants will receive this rate. The actual rate you’re charged when you apply can be higher or lower, depending on your credit rating and other factors.

» MORE: Try our personal loan calculator

Can I get a £25,000 unsecured personal loan?

You can apply for a loan in a branch or online, through a mobile app, or through a broker.

If you’re looking to take out a loan for £25,000, you will usually need to be over 18 or 21 and a UK resident with a UK bank account. Check the lender’s criteria, though, as age ranges and criteria can vary.

You may need to have a minimum monthly income and a good credit score, and the repayments must be considered affordable for you.

What are the pros of an unsecured £25,000 loan?

Typically, the advantages of an unsecured loan are:

• You don’t have to use an asset, such as your home, as security for the loan.
• You can borrow a large sum of money relatively quickly.
• You can spread the cost over your chosen period of time.
• Monthly repayments are usually fixed, so you know what you’re paying each month.
• You may pay a lower interest rate than you would for other types of lending, such as a credit card, and potentially borrow more.

What are the cons of an unsecured £25,000 loan?

The downsides of an unsecured £25,000 loan are that:

• You may pay a higher rate of interest than if you took out a secured loan.
• If you have a poor or limited credit history, you may not be able to access the best interest rates, and may not be eligible to apply with some lenders.
• You may not be able to borrow as much as £25,000 with some types of personal loan, such as guarantor loans.
• You may be charged a fee if you want to overpay or repay your loan early.

With any loan, try to only borrow what you need and make sure that the repayments are affordable for you. Using a personal loan calculator can help you estimate what your monthly payments will be.

How much would an unsecured loan for £25,000 cost in fees and interest?

The fees and interest you pay on the loan will depend on the lender, the interest rate you’re charged and the length of time you’re spreading the repayments over. The lender may also apply other charges and fees, such as if you pay off the loan early or an arrangement fee.

A good first step is using a personal loan calculator. This will give you an idea of how much the loan will cost each month before you apply. You can also choose a longer or shorter term to see how the monthly payments stack up, though a longer term will cost you more in interest.

When you see a provider's representative annual percentage rate (APR), it is just that – representative of the interest, fees and charges of at least 51% of borrowers. What the lender sets your rate at may be different, depending on your personal financial circumstances. So use it as a guide only.

It’s important not to borrow more money than you need, even if borrowing more can mean being charged a lower rate of interest. Not meeting loan repayments over the term could cause financial problems later on and affect your credit rating.

How to get a £25,000 unsecured loan

You can go directly to a lender or a broker to ask about a loan, or you can use a comparison site to search a number of lenders and loans in one go.

You can compare loans across providers with our comparison service, in partnership with Monevo. Just fill in how much you’d like to borrow and how long you need to pay it off, and what you want to use the money for. You can do this at the top of this page, or when you click through from an individual provider.

You will also need to provide a few personal and financial details. Monevo will then search a number of banks and lenders to filter the results to loans you’re likely to be eligible for. The search is quick and it’s free, and it won’t affect your credit score, as it’s a soft credit search. If you find a loan that’s right for you from the personalised results and want to go ahead with it, you can start your application.

It’s best not to apply for a number of loans in a short space of time, as this will show in your credit history and could harm your credit score.

How to choose the best £25,000 unsecured loan for me?

You can use our comparison service to help you choose a personal loan. When comparing loans from providers, look at the representative annual percentage rate (APR), as well as how much you can borrow over how long.

While the representative APR may not be the interest rate you are charged, it’s a useful way to compare loans, as it shows the overall cost of your loan without you having to factor in standard fees and charges on top of interest charged.

You may also want to check if the provider offers the flexibility of making overpayments without charging a fee.

Read the eligibility requirements, too. This will help prevent you from applying for a loan you’re not eligible for and affecting your credit record. Getting a quote using our comparison service won’t harm your credit record.

£25,000 Unsecured Loan FAQs