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Zopa is the UK’s largest peer-to-peer lending service, connecting investors with borrowers directly. They offer personal unsecured loans for reasons including car finance, home improvements and paying off existing debt.
||£1,000 to £25,000
3.3% APR Representative (£7,500 - £15,000)
|1 to 5 years
Representative 3.3% APR. Based on a loan amount of £7,500 over 36 months at an interest rate of 3.3% p.a. (fixed). Monthly repayment of £180.37. Total amount repayable £10,822.20.
Dependant on your exactly borrowing requirements, it may be worth thinking about other forms of borrowing, including extending your current account overdraft, using a credit card or remortgaging a property.
If you are interested in taking out a loan with Zopa, there are some key facts you should familiarise yourself with before making a decision.
Zopa personal loans
Zopa offer a fast, straightforward online application process to help borrowers access funds. Their loans are unsecured, so tend to be for smaller amounts and offered over shorter periods.
Advantages of Zopa personal loans
- Borrow from £1,000 to £25,000
- Repay over 1-5 years
- Fixed monthly repayments
- No early repayment fees
Restrictions on Zopa personal loans
- You must be a current UK resident
- You must be at least 20 years old
- You need 3 years of address history in the UK
- You have to be employed, self-employed or retired with a pension
- You need a pre-tax income of at least £12,000 per year
- 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 require a larger loan or are looking to borrow money over a longer period, you may need to consider taking out a secured loan. This will be tied to the value of an asset, usually your home, and generally allows you to borrow much more and for significantly longer than with an unsecured loan.
The amount you can borrow will depend on the value of your asset and any other loans you already have leveraged against it. This will normally be expressed as a Loan to Value (LTV) ratio. For a property worth £100,000, if you already have a mortgage for £50,000 and want to borrow £25,000 more, this will give you a LTV ratio of 75%. Most lenders will not want to go beyond an LTV ratio of 80% and you are likely to get better rates with an LTV ratio below 60%.
To find the best deals on secured loans, head over to our secured loan calculator.
Need to borrow more than £25k?
When borrowing more significant sums, getting the best possible deal can make a really big difference to the amount you end up repaying. It is therefore vital to shop around and see what various providers have to offer and which best matches your borrowing needs and personal circumstances.
If you are a homeowner or landlord and need to raise finance for improving your property, our team of specialist loan advisors can help. Simply give Fair Mortgages a call on 0117 313 7780 or use our contact form to get in touch.