Compare Halifax loans
Halifax is a trading division of Bank of Scotland which is, in turn, a subsidiary of Lloyds Banking Group. Halifax offers a few different options when it comes to borrowing, with their personal loans being one of their core financial products.
Personal loans, also known as unsecured loans, are just one type of borrowing you can use. Depending on your requirements and financial circumstances, you may also want to consider trying to extend the overdraft on your current account, taking out a credit card or applying for a secured loan.
If you do decide to go ahead with a personal loan, you need to make sure you understand exactly what this involves.
Halifax personal loans
Personal, unsecured loans are not tied to an asset, such as your house. This means you can usually not borrow as much as with a secured loan and the loan will normally have to be repaid sooner.
Advantages of Halifax personal loans
- Borrow from £1,000 to £50,000
- Repay over 1-7 years
- Pay a fixed rate of interest for the lifetime of the loan
- Existing Halifax customers who apply online can receive funds within minutes if their application is successful
- You can pay off your loan early, although this may incur a fee of up to 58 days interest (capped at £100)
Restrictions on Halifax personal loans
- You must be over 18
- You must be a UK resident (not including the Channel Islands and Isle of Man)
- You must be in paid employment or have a regular income
- You must be a Halifax current account holder, or else have a mortgage, credit card or existing loan with the bank
- If you do not stay on top of the agreed repayments, it could damage your credit rating
- Falling into arrears with your repayments means you risk the bank asking a county court to appoint a bailiff to recover the debt
Borrow more with a secured loan
For borrowing larger sums or when the money is needed over a longer period, a secured loan can be a better choice. Secured loans usually start from around £25,000 and can often be paid back over as much as 25 years. You may also get a better interest rate on a secured loan than for unsecured borrowing, although this depends on a number of factors.
Because a secured loan is tied to the market value of the asset it is secured against, this will determined how much you can borrow. It’s also important to understand that, if you fail to keep on top of repaying the loan, you may be required to sell the asset to repay your debt.
To find the best deals on secured loans, head over to our secured loan calculator.
Need to borrow more than £25k?
When you need to borrow a larger amount, getting a good deal on your loan can make a really significant difference to the amount you end up repaying. Knowing how to get the best value can be hard, especially when there are so many different lenders and types of loans to choose from.
Our specialist loan advisors can help you get the best deal on borrowing over £25,000 for improvements to a property you own. To get personalised advice on secured loans for property improvements, call Fair Mortgages on 0117 313 7780 or use our contact form to get in touch.