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Long Term Personal Loans

Long term loans are borrowed at a longer repayment plan of a year or more. They are often offered at a lower interest rate than short-term loans.

A long term loan lets you spread the costs of your repayments from one to up to 30 years. This flexibility can often make your monthly payments more manageable than short term loans. However, they usually result in higher borrowing costs overall and can potentially mean you are still paying off your debt in decades to come.
  • Long term loans can be repaid during a term of up to 30 years

  • The payments are spread out, making them more manageable

  • The interest rates are often lower on long term loans

  • You may pay more overall compared to short term loans

  • There is usually an early repayment charge, however this won’t be any more than a shorter term loan

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Homeowner rates, from 6.59%

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What are long term loans?

Long term loans are a form of loan agreement that is typically repaid within a timespan longer than a year. It means you’re able to spread the cost over time, usually at lower interest rates than short term loans.

However, while the repayments are more manageable, overall you’re likely to pay more than short term loans because of the interest payable over a longer term.

Benefits of choosing a long term loan

Long term loans usually allow you to borrow large amounts of money and then spread the costs into manageable monthly repayments over one to 30 years. They are often offered at a lower APR than short term loans, helping you to manage your finances more effectively.

Risks of choosing a long term loan

While the interest rates are lower each month, the longer the terms of your loan, the more interest you will end up paying overall.

Long term loans can also make it tricky to plan for the future, as you still could be paying off your loan in years to come. If you want to pay it off early, you’ll also face an early repayment fee.

Long term loans vs short term loans

The main difference between long term and short term loans is the period over which it is repaid.

A short term loan is often repaid weekly or monthly, over a shorter timescale, while long term loans can span years or even decades. Interest rates are often higher for short term borrowing, while long term loans are designed with a lower rate of interest over a longer period, meaning you may pay a lot more in interest overall.

Which type of loan is more suitable to you depends on your circumstances, so it is important to weigh up the differences before choosing.

Applying for a long term loan

When choosing between a long term and short term loan, it’s important to evaluate what you can afford to pay back, over a repayment period that suits you.

With long term loans, lenders may pay closer attention to your credit rating to understand your financial circumstances and make a decision of whether you can afford the repayments in one, two or even ten years’ time. Therefore, make sure your credit report is up to date and without errors before applying.

What do I need to apply for a long term loan?

You can start your application for a long term loan online with just a few details to hand, including:

We will then get in touch to discuss your requirements, so it’s a good idea to have information handy regarding what you need the loan for, and whether you are taking out a loan to consolidate debts.

Our online secured loan calculator is also useful to get an idea of how much you can borrow for a long term loan.

Long Term Loan FAQs

Please see below for the answers to our most commonly asked questions. If you can't find the information you need, get in touch - one of our advisers will be happy to help.

Is a long term loan right for me?

A long term loan is a big commitment, as you may be making repayments for years to come, so it’s important to consider the options carefully. For instance, if you are planning on changing jobs in a year or so, will this affect your ability to meet the repayments?

Try to choose a loan amount which is affordable, at a repayment period which suits your situation, both now and in the future.

Can I pay off a long term loan early?

You can pay off the outstanding balance of your long term loan at any time; however, there may be an early repayment fee. This could make early repayment a less attractive option, so it’s always best to make sure you understand the terms of the loan before you commit.

Long term loan details

How much can I borrow?

With Norton Finance, you can borrow as little as £3,000 or as much as £500,000.

How long are the repayment terms?

Our payment terms are flexible – choose between one and 30 years to spread the cost of repayments more comfortably.

What are the interest rates?

Our interest rates vary depending on your financial history and personal circumstances. Homeowner rates start from 6.59%.

Are there any loan fees?

As we are a broker, not a bank, we search across the market from over 600 different loan products to find the best fit for you. We receive commission from the lender on completion of a loan application, and we may also charge a broker fee of up to 12.5% of any secured loan amount borrowed, capped at £3,995. There are no broker fees on unsecured loans.

Am I eligible for a long term loan?

We have more than 40 years’ experience in helping people obtain the funds they need to make those big projects happen. Even if you have been refused credit by other lenders because of CCJs or credit history, talk to us. We’ve helped find the right long term loan for people who are on probationary periods in a new job, self-employed, retired or disabled with benefit income, so why not get in touch and see if we can help.

What can I use a long term loan for?

A long term loan could help you pay for a range of big-ticket items and life events including:


Car loan

Pay for much-needed repairs or use the funds to buy a new vehicle.

Home improvement

A long term loan might help pay for significant improvements to your home like a new garage or loft conversion.

Debt consolidation

A long term loan for debt consolidation could help transfer your debts into one affordable, monthly repayment.

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