A 12 month loan spreads repayment over a year, which lowers the monthly amount compared with a shorter term. You can apply to borrow from £100 to £5,000.
One soft search checks a panel of FCA authorised lenders and brokers for a potential match, with no impact on your credit score. A hard credit search is only carried out when you formally apply to a lender which can affect your credit score.
How a 12 month loan works
You repay in twelve scheduled monthly instalments. A longer term can lower the monthly repayment but may increase the total cost.
- Twelve scheduled monthly repayments
- Lower monthly cost than a 6 month term, for the same amount and rate
- Predictable payments you can budget for
What a 12 month loan costs
A longer term lowers the monthly figure but usually adds to the total interest. Always look at the total amount repayable, not just the monthly cost.
Who a 12 month loan suits
A year long term suits people who want a manageable monthly payment without stretching repayment over several years. It sits between the low total cost of a short term and the low monthly cost of a long one.
Overpaying or settling early
Most lenders allow overpayments or early settlement on a twelve month loan, which can bring down the total interest. It is worth checking your agreement so you know how any early repayment is handled before you sign.
How to apply
Borrowing responsibly
Before you apply, check the repayments sit comfortably alongside your other commitments. Look at the total amount repayable over the whole term, not just the monthly figure, and only borrow what you genuinely need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is subject to an FCA total cost cap, meaning you cannot repay more in interest and fees than the amount borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.