Long Term Loans in the UK: Your Complete Guide

When you need to borrow money, the right loan term can make all the difference. While short-term loans are designed for quick repayment, long term loans UK spread repayments over a longer period, reducing monthly costs and offering financial flexibility.

This guide explains everything you need to know about long term personal loans, including how they work, the different types available, where to find direct lender long term loans, and what options exist if you have poor credit.

What Are Long Term Loans?

A long term loan is a form of credit that allows you to borrow a fixed amount and repay it over an extended period — usually between 2 and 30 years. These loans are popular for:

• Financing large purchases like cars or home improvements

• Debt consolidation

• Spreading out repayments to reduce monthly financial pressure

Unlike payday or short-term credit, long term lending is structured to give borrowers more time and predictability.

Types of Long Term Loans

Long Term Personal Loans

These are unsecured loans typically ranging from £1,000 to £25,000 with repayment terms of 2–10 years. They don’t require collateral and are often used for home improvements, weddings, or consolidating credit card debt.

See MoneyHelper – Personal Loans for more details.

Long Term Unsecured Loans

An unsecured long term loan doesn’t require you to put up property or assets as collateral. While easier to obtain, lenders may charge higher interest rates due to the increased risk.

Long Term Secured Loans

Also called homeowner loans, these require you to secure borrowing against your property. They can offer low interest long term loans, but failure to repay puts your home at risk. See Citizens Advice – Secured Loans.

Long Term Loans for Bad Credit

If you have a poor credit history, some lenders specialise in long term loans for bad credit UK. While available, these typically come with higher APRs. Responsible lenders will always perform affordability checks.

Long Term Business Loans

For business owners, long term loans provide capital for growth, expansion, or refinancing existing debt. These can range from 3 to 25 years.

How Much Can You Borrow with a Long Term Loan?

Loan sizes vary by lender, but common borrowing ranges are:

• Personal long term loans: £1,000 – £25,000

• Secured loans: £10,000 – £100,000+ (depending on property equity)

• Business long term loans: £25,000 – £500,000+

The longest loan terms are usually found with mortgages and secured loans, stretching to 25–30 years.

Benefits of Long Term Loans

• Lower monthly payments – Spreading repayment reduces immediate financial strain.

• Larger borrowing amounts – Ideal for significant expenses.

• Predictability – Fixed-rate loans allow consistent budgeting.

• Debt consolidation – Combine multiple debts into one repayment plan.

Drawbacks of Long Term Loans

• More interest overall – Even at a lower APR, paying interest over many years increases the total cost.

• Early repayment charges – Some lenders add fees if you repay sooner.

• Risk with secured loans – Your home may be at risk if repayments are missed.

• Harder approval with poor credit – While direct lender long term loans bad credit exist, they often cost more.

Long Term Loans and Credit Scores

Your credit score plays a major role in determining eligibility and interest rates. Applicants with good credit can access low interest long term loans, while those with bad credit may need to look at specialist lenders.

For a free UK credit report, check Experian or Equifax.

Direct Lender vs Broker

When searching for long term loans direct lenders, you’ll encounter two types of providers:

• Direct lenders – Deal with you directly, often providing faster approval and no broker fees.

• Brokers – Compare loans from multiple lenders, but may charge commission.

Borrowers looking for cheap long term loans should always compare both options to secure the best deal.

Long Term Loans for Bad Credit in the UK

Even with poor credit, borrowing is possible. Options include:

• Credit unions – Community lenders with fair rates (Find Your Credit Union).

• Specialist bad credit lenders – Offer tailored products, though at higher rates.

• Secured loans – May be easier to obtain if you own property.

Be wary of unregulated lenders advertising guaranteed approval long term loans. All UK lenders must be authorised by the Financial Conduct Authority (FCA).

Long Term Loans vs Short Term Loans

How to Apply for a Long Term Loan in the UK

• Check your credit score – This helps you understand what offers you might receive.

• Compare lenders – Use trusted comparison tools like MoneySuperMarket or Compare the Market.

• Decide secured or unsecured – Secured loans may offer lower APRs but carry risks.

• Check eligibility – Some lenders offer loan eligibility checkers with no impact on your score.

• Submit documents – Proof of income, address, and ID will usually be required.

• Receive funds – Depending on the lender, payout can take from 24 hours to a few days.

FAQs

What is the best long term loan in the UK?
This depends on your needs. For low-cost borrowing, mainstream banks and credit unions often provide the best long term loans.

Can I get long term loans with poor credit?
Yes, but expect higher interest rates. Options exist for long term loans for bad credit UK, but affordability checks are always required.

What’s the maximum loan term available?
Unsecured loans usually cap at 10 years, while secured and mortgage products can stretch to 25–30 years.

Are cheap long term loans real?
Yes — particularly if you have good credit. Always compare APRs to find low interest long term loans.

Do direct lenders offer better rates than brokers?
Sometimes. Direct lender long term loans may be cheaper, but brokers can give a wider range of options.

Conclusion

Long term loans UK are a practical way to finance large purchases, consolidate debt, or spread costs over time. Whether you’re seeking long term unsecured loans, low interest long term loans, or need options for bad credit, the key is to compare, check FCA regulation, and borrow responsibly.

By understanding the pros and cons, comparing lenders, and only borrowing what you can afford, you can find the best long term loan that fits your financial needs while avoiding unnecessary debt.