UK Loans
UK Personal Loans 2026: How to Compare Representative APR and Find the Real Cost
The advertised rate must be offered to 51% of accepted applicants. You may well be in the other 49%.
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- Representative APR rule
- Offered to at least 51% of accepted applicants
- Your rate
- Can be higher, disclosed before signing
- Typical loan size
- 1,000-25,000 pounds
- Term range
- 1-7 years
The headline rate is a majority figure
FCA rules require the advertised APR to be available to 51% of people accepted. That still leaves a 49% chance of a worse rate - check the pre-contract disclosure.
Compare total repayable
APR is annualised and hides term effects. An 8,000 pound loan over 3 years at 8% costs less than the same loan over 7 years at 6%. Compare total repayable for the same term.
Fees sit outside the APR
Arrangement fees, broker fees and late charges are excluded. Add them to the total before deciding.
Overpaying is usually free
Most UK personal loans allow penalty-free overpayment. Confirm it - it is how you shorten the term without renegotiating.
FAQ
Is the representative APR guaranteed?▾
No, only for 51% of accepted applicants.
Can I overpay without penalty?▾
On most loans, yes.
Does applying hurt my file?▾
A hard search is recorded.
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