
Cut existing loan costs
Free calculator shows if you'll save by switching loans
Coronavirus financial worries have caused some lenders to tighten their loan acceptance criteria. But low rates are still available for many, so cutting the cost of your existing loan is still possible. This guide will show you how to find the best new deal, and features a unique loan-switching calculator so you can see if you can cut your costs.
Please note: This article is about unsecured loans, ie, the type sold by most high-street lenders. The issues surrounding secured loans (where your home may be at risk) are even more complex. So this article is a secured loan-free zone.

How to cut existing loan costs, step-by-step
Here we'll take you through the three key steps to calculate how much you could save by effectively switching loans – using a new, cheaper loan to repay your existing, more costly one.

- How much it would cost to pay off your loan right now
- What your exact monthly payments are
- How long your loan has left to go
The first is how much you'd need to borrow on a new loan to clear the existing one. It's the full debt plus any early settlement penalty charge (the maximum fee is two months' interest). This is called the settlement figure – you'll usually need to call your lender to get this.
See which loans you've the best chance of getting, in your own personal best-buy table.
Usually, applying is the only way to know if you'll be accepted for a loan. Yet that marks your credit file, affecting your ability to get future credit. To help, our tool uses a 'soft search' to find your chances of acceptance before applying.
Check your chance of acceptance
If you're looking for a loan, check out the best-buy rates below. We list loans by 'bands' as the rate you could get differs depending on how much you want to borrow.
Though, beware, all the top loans compared below and most in the eligibility checker are representative rates (some providers show guaranteed rates - we're working on adding more). This means only 51% of those accepted actually need to be given these rates. Depending on your credit score, you may pay a lot more.
As we warn above, while you should only borrow what you NEED, a peculiar quirk means you can sometimes pay less by getting a slightly bigger loan. Rates of loans under £3,000 are the most expensive, so always check if it's actually cheaper to borrow slightly more.
Specialist Money Transfer credit cards are also far cheaper than the loans below, if you can repay the full balance over 12-18mths.
Cheapest loans £3,000 - £4,999
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Important. Specialist Money Transfer credit cards are far cheaper than the loans below, provided you can get a credit limit big enough. | ||
Ratesetter | 6.9% rep APR | Check eligibility |
Apply* | ||
Hitachi | 8.4% rep APR (2-5 years) | Check eligibility |
Apply* | ||
Tesco Bank | 8.5% rep APR | Check eligibility |
Apply* | ||
Virgin Money | 8.5% rep APR | Check eligibility |
Apply* | ||
Hastings Direct | 8.7% rep APR |
Check eligibility |
Apply* |
See all official APR examples.
Cheapest loans £5,000 - £7,499
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Virgin Money | 3.4% rep APR | Check eligibility |
Apply* | ||
Tesco Bank | 3.4% rep APR (1-3 years) |
Check eligibility |
Apply* | ||
MBNA | 3.5% rep APR | Check eligibility |
Apply* | ||
Hastings Direct | 3.5% rep APR | Check eligibility |
Apply* |
See all official APR examples.
Cheapest loans £7,500 - £15,000
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Cahoot | 2.8% rep APR | Check eligibility |
Apply* | ||
TSB | 2.8% rep APR | Check eligibility |
Apply* | ||
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 2.8% rep APR Must have had a Nectar card for 6mths+ |
Check eligibility |
Apply* | ||
M&S Bank (i) | 2.9% rep APR (1-7 years) | Check eligibility |
See all official APR examples. (i) Important: M&S Bank has asked we direct people to our eligibility calculator, so only those more likely to be accepted will actually apply, reducing demand and enquiry calls, as it's already over capacity and needs to prioritise coronavirus help for vulnerable people.
Cheapest loans £15,001 - £20,000
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Cahoot | 2.8% rep APR | Check eligibility |
Apply* | ||
TSB | 2.8% rep APR | Check eligibility |
Apply* | ||
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 2.8% rep APR (2-5 years) Must have had a Nectar card for 6mths+ |
Check eligibility |
Apply* | ||
Tesco Bank | 2.9% rep APR (1-3 years) | Check eligibility |
Apply* |
See all official APR examples.
Cheapest loans £20,001 - £25,000
LENDER | REP APR (1-5 years or stated) |
CHECK ELIGIBILITY + APPLY |
---|---|---|
Ratesetter | 2.8% rep APR | Check eligibility |
Apply* | ||
Sainsbury's Bank | 2.8% rep APR (2-5 years) 3% rep APR (6-7 years) Must have had a Nectar card for 6mths+ |
Check eligibility |
Apply* | ||
TSB | 2.8% rep APR | Check eligibility |
Apply* | ||
Tesco Bank | 2.9% rep APR (1-3 years) | Check eligibility |
Apply* | ||
AA | 2.9% rep APR (AA members, 1-7 years) 3% rep APR (Non-members, 1-7 years) |
Check eligibility |
Apply* |
See all official APR examples.
Important. Certain lenders offer personal loans up to £50,000, though it's a huge commitment, so think very carefully before getting such a large amount. Be VERY sure you can repay it.
If you do plan to borrow, first check with your own bank, as cheap rates for such large borrowing are often for existing customers only. If your bank can't help, next look at the cheapest open market rates.
Cheapest loans over £25,000
LENDER | REP APR (£25k-£35k, 1-5 years or stated) |
APPLY |
---|---|---|
First Direct |
£25k-£30k: 3.3% rep APR (1-7 years) | Existing Customers only Apply (not in eligibility calc) |
£30k-£50k: 6.7% rep APR (1-7 years) | ||
Halifax | 5.8% rep APR | Existing Customers only Apply (not in eligibility calc) |
Sainsbury's Bank | £25k-£30k: 6.2% rep APR (2-5 years) Must have had a Nectar card for 6mths+, sadly not open to anyone self-employed |
Check eligibility |
Apply* | ||
Virgin Money | 6.9% rep APR (1-7 years) | Apply (not in eligibility calc) |
See all official APR examples.
If the above doesn't work, you could combine smaller personal loans or remortgage, though that usually means extending the term, more interest and securing the debt on your house.
If you're struggling to pay an existing loan due to coronavirus, lenders should provide support. What's available depends on whether you've already had help:
For the latest updates and full information on the support available, see our Coronavirus Finance & Bills Help guide.
Q&A: Cutting loan costs

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