Long Term Loans

Long term loans allow you to spread repayments over a longer period, often between one and ten years. They are commonly used to fund larger costs, such as home improvements, consolidating existing debts or covering significant purchases.

How much would you like to borrow?

Loan Amount

Representative 79.5% Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 3 months. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £570.44, an annual interest rate of 59.97% (fixed) Representative APR: 79.5% (variable). ^Subject to lender approval. Cash within 60 minutes is possible, depending on whether your bank supports Faster Payments. Otherwise, funds may take 24–48 hours to arrive.

What are long term loans

Long term loans are designed for borrowing larger amounts of money, typically starting from around £1,000 and reaching £25,000 or more depending on the lender. They are repaid through fixed monthly instalments, which can make repayments more predictable and easier to manage over time.

Benefits of long term loans

Larger borrowing amounts
Long term loans usually offer higher borrowing limits than short term loans, which can make them suitable for bigger expenses.

Lower monthly repayments
Spreading the loan over a longer period can reduce the size of each monthly payment, helping make repayments feel more manageable.

Flexible use of funds
The money can often be used for a variety of purposes, such as home improvements, buying a car or consolidating existing debts.

Things to consider

Total cost of borrowing
Although monthly payments may be lower, paying interest over a longer period can increase the overall amount you repay.

Credit checks and eligibility
Lenders will assess your credit profile when you apply. Having a stronger credit score can improve your chances of approval and may help you access better rates.

Frequently Asked Questions

How long can repayment terms be for long term loans?

Repayment terms for long term loans can vary widely, but they are generally structured over a period of between one and ten years. The exact length offered will depend on the lender’s criteria, the amount you are borrowing and how they assess affordability based on your financial circumstances.

Shorter long term loans, closer to one or two years, often come with higher monthly repayments but lower overall interest because the balance is cleared more quickly. Longer terms, such as five to ten years, can significantly reduce the size of each monthly payment, which may make the loan feel more manageable, although the total interest paid over the life of the loan will usually be higher.

Lenders decide the available term by looking at factors such as your income, existing commitments, credit profile and the size of the loan requested. Choosing the right length is important, as it should balance affordable monthly repayments with the overall cost of borrowing.

Can I get a long term loan with bad credit?

Some lenders are willing to provide long term loans to people with poor credit, but the terms are often more restrictive and the interest rates are usually higher. This is because lenders see a lower credit score as a greater risk, so they price the loan accordingly to reflect that risk.

Rather than relying only on your credit history, these lenders will typically focus heavily on affordability. They will look at your income, regular expenses and existing financial commitments to decide whether the repayments are realistic over a longer period. While approval is still possible, borrowing limits may be lower than for someone with a stronger credit profile.

It is important to be cautious when considering a long term loan with poor credit. Although spreading repayments over several years can reduce the monthly cost, higher interest rates can significantly increase the total amount repaid. Comparing options carefully and making sure the loan is affordable throughout the full term is key to avoiding further financial pressure.

What are the common uses of long term loans?

Long term loans are commonly used to cover larger expenses that would be difficult to pay for all at once. Many people use them to fund home improvements, such as renovations, repairs or upgrades that add value or improve living conditions. Spreading the cost over several years can make these projects more manageable financially.

They are also frequently used for car purchases, particularly when buying a vehicle outright is not possible. A long term loan allows borrowers to spread repayments while still gaining immediate access to the car they need for work, family or everyday travel.

Another common use is debt consolidation. Borrowers combine multiple existing debts into one single loan, often with a longer repayment period. This can simplify finances by reducing several payments into one, although it is important to consider the overall cost and ensure the new loan remains affordable.

Are long term loans regulated in the UK?

Yes, any lender offering long term loans in the UK must be authorised and regulated by the Financial Conduct Authority. This regulation is in place to make sure lenders follow strict rules designed to protect borrowers and promote fair, responsible lending.

FCA authorised lenders are required to carry out affordability checks, provide clear information about interest rates and fees, and treat customers fairly throughout the life of the loan. This helps reduce the risk of people taking on borrowing they cannot realistically repay.

Using an FCA regulated lender also gives you access to important consumer protections. If something goes wrong, you have the right to complain to the Financial Ombudsman Service, and lenders must follow rules that ensure transparency and fair treatment at every stage.