Best and Cheapest Personal Loan Deals in the UK

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Are you looking for the best and cheapest personal loan deals in the UK? You came to the right place. Though major lenders have raised their interest rates this year, there are still cheap deals you can snag if you know where to look. To save you time and effort, we’ve come up with a list of the most competitive deals you can get your hands on below.

Before you go ahead and sign a deal, remember that lenders have more tricks under their sleeves than you can count. When picking a deal, it’s important to be extra careful. The cheapest deals aren’t always the best deals. To ensure that you’re not going to get bled out with hidden fees, careful planning and budgeting is imperative.

Now for our list of the best and cheapest loans in the UK, here are options you can choose from. For smaller loan amounts, the lowest rep APR is 4.6% but this is depending on the loan amount and repayment term. The best banks to check out for such loans are the following:

  • Zopa – For loans between £1,000 and £1,999, the average rep APR is from 7.7 to 7.9% while loans between £2,000 and £2,999 have a rep APR from 6.9 to 7.9%. If you’re going to borrow at least £3,000 to £4,999, you can avail a much cheaper rep APR from 4.6 to 6.9%.
  • Hitachi – Like Zopa, Hitachi also offers smaller loan amounts using your credit card but with higher interest rates. For loans between £1,000 and £1,999, the rep APR is 12.3% while loans from £2,000 to £2,999 have a rep APR from 7.4 to 12.3%. Finally, for loans from £3,000 to £4,999, the rep APR is much cheaper at around 7.4%.
  • Sainsbury’s – Offering pretty similar rates as Hitachi is Sainsbury’s. For loans between £1,000 and £1,999, expect the rep APR to be somewhere from 12.4 to 12.5%. If you’re going to borrow between £2,000 and £2,999, the current rep APR is from 12.4 to 12.5% while loans from £3,000 to £4,999.

For loans £5,000 or more, the options are more diverse and wider. You can find the best deals from the following banks:

  • Zopa – For loans from £5,000 to £7,499, Zopa charges a rep APR of 4.3 to 4.4% depending on the loan term. For loans from £7,500 to £14,999, the rep APR is cheaper at 3.6%.
  • Sainsbury’s Bank – Another bank that offers one of the cheapest rates in the UK is Sainsbury’s with rep APR of 4.4 to 4.5% for loans from £5,000 to £7,499. For loans from £7,500 to 14,999, the rep APR is from 3.5 to 3.6%. If you’re a cardholder with the bank, rates may be even cheaper.
  • Hitachi – Hitachi also offers competitive rates on their loans. For amounts from £5,000 to £7,499, the rep APR is 4.4%.
  • Marks & Spencer – You’d also want to check out Marks & Spencer. The bank advertises a rep APR of 4.5% for loans from £5,000 to £7,499. If you need to borrow more, you can enjoy a much cheaper rate at 3.6% rep APR for loans from £7,500 to £14,999.
  • Cahoot – Also offering 4.5% rep APR is Cahoot for loans from £5,000 to £7,499. You’ll enjoy cheaper rates, however, for loans from £7,500 to £14,999 at rep APR of 3.6%.
  • First Direct – Finally, we have First Direct offering 3.6% rep APR for loans between £7,000 and £25,000. This is provided that you are a 1st account customer of the bank.