Compare RateSetter loans
Click here for RateSetter Loans »
RateSetter is a peer-to-peer lending service that allows borrowers to access money directly from investors. They offer loans to borrowers for a variety of reasons, including car finance, home improvements and debt consolidation.
||£1,000 to £35,000
4.3% APR Representative
|1 to 5 years
Representative 4.3% APR. Based on a loan amount of £7,500 over 33 months at an interest rate of 3.1% p.a. (fixed) and a fee of £126. Monthly repayment of £241.11. Total amount repayable £7,956.63.
While a personal loan can be a great way to access extra money, there are other options you may want to consider. These include extending the overdraft on your current account, taking out a new credit card or remortgaging your home.
If you are interested in taking out a loan with RateSetter, there are some key facts it is worth familiarising yourself with before proceeding.
RateSetter personal loans
RateSetter offer a relatively fast and simple online application process making it a convenient way to access extra money when you need it. Their loans are best suited to those looking to borrow smaller amounts over shorter periods.
Advantages of RateSetter personal loans
- Borrow from £500 to £35,000
- Repay over up to 5 years
- Get a lending decision within 1 working day and, if successful, receiving your funds on the next working day
- No early repayment fees
Restrictions on RateSetter personal loans
- You must have a UK bank account
- You must be at least 21 years old
- You have been a UK resident for at least 3 years
- You have a regular source of income
- You have a good credit history
- Failing to stay on top of your repayments could damage your credit rating
- If you do not repay your loan, a county court may appoint a bailiff to recover the debt
Borrow more with a secured loan
If you need to borrow a larger amount or require a longer repayment period, a secured loan may be a more appropriate option. This usually allows you to borrow significantly more than with an unsecured personal loans and can allow you to pay the loan back over several decades.
Secured loans are normally tied to the value of a property and are sometimes known as “second charge mortgages”. The amount you can borrow will depend on the market value of your property and what, if any, debt you already have leveraged against it.
Lenders will make a determination based on a Loan to Value (LTV) ratio. This means the value of the loan you want to take our, plus any existing debt, versus the value of your house. So, if your property is worth £100,000, you have an existing mortgage of £50,000 and want to borrow £25,000 more as a secured loan, this equals a Loan to Value ratio of £75,000/£100,000 normally expressed as 75%. The lower your LTV ratio, the better interest rate you are likely to be offered.
To find the best deals on secured loans, head over to our secured loan calculator.
Need to borrow more than £25k?
If you need to take out a loan for a larger amount, it is absolutely imperative to get the best deal possible. Even a small difference in interest rates can add up to a significant difference in the amount you end up repaying, especially if borrowing over a long period.
Fair Mortgages team of specialist loan advisors can help you find the best deals on loans over £25k for property improvement purposes. Simply call us on 0117 313 7780 or use our contact form to get in touch.