Loan Types & Lenders

A full guide to the types of loan available in the UK — from personal loans to guarantor, peer-to-peer and credit unions.

★ Start here

low risk

Personal Loans: Understanding Finance Options, Risks & More

A complete UK guide to personal loans: understanding finance options, risks & more. Plain English, no affiliate links, no financial advice.

8 MIN →

Guides on this topic All guides →

low risk

Personal Loans: Understanding Finance Options, Risks & More

A complete UK guide to personal loans: understanding finance options, risks & more. Plain English, no affiliate links, no financial advice.

8 MIN →

high risk

Guarantor Loans: What to Know Before You Apply

A plain-English UK guide to guarantor loans. Covers how they work, the risks for both borrower and guarantor, alternatives, and where to get free help.

7 MIN →

high risk

Secured Loans: What to Know Before You Apply

A plain-English UK guide to secured loans. Covers how they work, the risks, what to compare, and free help if you are struggling with debt.

7 MIN →

high risk

Payday Loans: What You Need to Know

A plain-English guide to payday loans and high-cost short-term credit in the UK. Covers how they work, the risks, alternatives, and where to get free help.

7 MIN →

medium risk

Peer to Peer Loans: Everything You Need to Know

A complete UK guide to peer to peer loans: everything you need to know. Plain English, no affiliate links, no financial advice.

7 MIN →

low risk

Credit Unions: What You Need to Know

A complete UK guide to credit unions: what you need to know. Plain English, no affiliate links, no financial advice.

6 MIN →

low risk

Direct Lender vs Broker - Different Loan Options

A complete UK guide to direct lender vs broker - different loan options. Plain English, no affiliate links, no financial advice.

6 MIN →

Related situations All situations →

I'm new to credit → I have bad credit → I want to understand the real cost of borrowing → I want to understand loan types →

Tools & calculators

Tool

Borrowing Affordability Checklist

A structured checklist to run through before applying for any loan — to make sure you have considered the risks.

Open →

Tool

Loan Repayment Calculator

Working out how much your monthly repayments will be for a given loan amount, APR and term.

Open →

Key terms Full glossary →

APR (Annual Percentage Rate) The Annual Percentage Rate shows the total cost of credit per year, including fees and int… Credit union A not-for-profit financial co-operative owned by its members. Credit unions offer savings … Guarantor A person who agrees to repay a loan if the primary borrower fails to do so. Guarantor loan… Representative APR The rate that at least 51% of successful applicants receive. It's a legal minimum in adver… Secured loan A loan backed by collateral — usually your home. If you fail to repay, the lender can repo… Unsecured loan A loan not tied to any asset. If you default, the lender cannot automatically seize proper…

Common questions

What is a guarantor loan? +

A guarantor loan involves a third party — usually a friend or family member with good credit — agreeing to make payments if you cannot. This reduces the risk for the lender, which can mean lower rates for borrowers with thin or poor credit histories.

Are payday loans a good idea? +

Payday loans are among the most expensive forms of credit. They should only be considered as a last resort for short-term needs, and only if you are confident you can repay in full on your next payday. They are not suitable for ongoing financial shortfalls.

What is a credit union? +

Credit unions are not-for-profit financial cooperatives. They offer savings accounts and affordable loans to members, and are often willing to lend to people who struggle to access mainstream credit. There is one for most areas and many employers.

What is the difference between a loan lender and a broker? +

A lender provides money directly. A broker searches multiple lenders on your behalf and earns a fee or commission if you take out a loan through them. Brokers are useful for comparing options quickly, but check whether they are FCA-authorised.