What are 5 year loans?
A 5 year personal loan sets the repayment window from the start, so you have an end goal for paying off your loan. This gives you peace of mind to borrow an amount with monthly repayments you can afford to pay back, helping you to plan your finances effectively. To understand your terms, use our 5 year personal loan calculator to see an estimated monthly repayment or get an instant quote from us.
Before you decide on a plan, you’ll need to choose between a secured or unsecured loan. A secured loan uses your assets, such as your home, as collateral if you fail to make the repayments. However, this loan is usually offered at a lower interest rate, meaning cheaper monthly instalments.
Unsecured loans are not backed by collateral, so a lender will look more closely at your credit report to decide whether or not to offer you a loan. This means your chances of being accepted for a 5 year unsecured personal loan could be affected if you have CCJs or bad credit.