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The loan

£
%
£
The Representative APR is what at least 51% of accepted applicants are quoted. Your actual rate depends on your credit profile, so the headline number isn't a guarantee.

What it costs

Monthly payment
£0
Total repayable
£0
Total interest
£0
Cost per £100 borrowed
£0
Goes to principal Goes to interest

Amortisation table

MonthPaymentInterestPrincipalBalance

For illustration only. Real loan agreements may include charges, insurance, variable rates or different interest calculation methods that change the totals.

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How the maths works

A standard fixed-rate loan uses the same monthly payment formula as a repayment mortgage. The lender calculates a single payment that, made every month for the term, exactly clears the balance — with interest applied to whatever is still owed at the start of each month.

Early in the loan, the balance is high, so interest is high — meaning a bigger slice of your payment is interest and a smaller slice chips at the principal. As the balance falls, interest falls, and more of each payment goes to principal. Plot the two and you get the classic crossover curve in the chart above.

APR vs interest rate — they're not the same

The APR (Annual Percentage Rate) includes most fees the lender requires, expressed as a yearly rate. The interest rate alone ignores fees. UK lenders are required to advertise the APR for personal loans, which is why two products with the same headline interest rate can show different APRs once arrangement fees are baked in.

When does longer "look" cheaper but actually cost more?

Always. Stretching a loan over more years lowers each monthly payment but raises the total interest, often dramatically. £10,000 at 9.9% APR over 3 years costs about £1,580 in interest. The same loan over 7 years costs roughly £3,800 — more than double — for the same money borrowed.

Things to check before signing


Frequently asked questions

Is the APR I get always the representative one?

No. Lenders only have to give the representative APR to 51% of accepted applicants. The other 49% can legally be charged more. The actual rate is shown after a soft search, before you formally apply.

Can I model a credit card balance with this?

Roughly, yes — enter the balance, the card's interest rate, and a term that gives you a payment you can afford. But credit cards don't have a fixed term: minimum payments shrink each month as your balance falls, dragging out the schedule for years. A dedicated card payoff calculator gives a more accurate picture.

Does it include PPI / insurance?

No. PPI is no longer commonly sold on UK personal loans, but if your agreement bundles in any insurance product, add it to the "arrangement fee" field for a closer total.