UK personal loans

There are around 70 types of lenders offering personal loans in the UK today, from traditional high street banks and building societies to online banks and supermarkets. So it’s important to shop around to get the best deal, and that’s why uSwitch.com is your best option.

Here are just a few of the ways that you can take out a personal loan in the UK, these days:

High street banks and building societies

This traditional way of taking out a personal loan in the UK is still a good idea if you like to go for familiar brands. Or you might want to be able to drop in and chat to your lender, as they usually have branches in every town. But a bank on the high street will usually charge a little more interest than an online bank.

Supermarkets, shops and post offices

UK supermarkets, shops and post offices are increasingly starting to offer their own financial products. This can be really handy as you can include shopping for a personal loan along with other types of purchases.

Online banks

With online banking you benefit from the fact that the lenders have lower overheads, so they usually charge less for personal loans. In fact, most of the lowest loan rates around are from online banks. As well as banking online, you'll also be able to phone the loan company if you have problems or need advice. Another advantage is that you do not have to be in the UK to manage your loan.

Borrowing and lending exchanges

Borrowing and lending exchanges work rather like a co-operative in that they offer lower cost personal loans.

They are able to do this because they cut out the sorts of middlemen and extra costs that make high street bank loans so expensive. So people lend and borrow from one another directly.

Their lenders and borrowers enter into a legally binding contract with their respective borrowers and lenders. The exchange manages the collection of monthly repayments and if any of that money is not paid on time, it uses exactly the same sort of recovery processes that the high street banks use.

Then to reduce any risk further, amounts that are borrowed or loaned are spread between at least 50 borrowers and lenders.