If you borrow more than £25,000, you will be able to extend the maximum repayment period by two years. Most loans can be rapid between one and five years. But take note, if you want to settle the loan early you will be subject to a fee of up to 58 days of interest. You can even make early repayments or settle the loan early. This is subject to approval but could help ease the pressure if an unforeseen purchase is needed while you repay. Lloyds offer their personal loan customers the opportunity to apply for two repayment holidays every year. Lloyds Debt Consolidation Loans Have Repayment Holidays (BONUS!)Īlthough the rates might not have you jumping for joy, there are other benefits of a Lloyds debt consolidation loan that will. The rate you can get will depend on personal circumstances. It is often the case that few people can get these low rates and some people can only get the highest APR rate of 29.9% – a huge difference. But this representative rate is slightly higher than the other big UK banks who can offer rates of 3% to 3.45%.īut don’t focus too much on the representative rate. The representative APR of Lloyds debt consolidation loan is 3.9% for amounts between £7,500 to £25,000, which is the same as NatWest. If you are a full-time student you will not be able to apply for a Lloyds debt consolidation loan. Moreover, you must have regular income or employment to apply. This is unlike Santander and other banks who offer their debt consolidation loans to non-customers as well – sometimes with less favourable terms. Other banks take a similar approach, such as NatWest where must have had an account for three months with them. You also need to have had a Lloyds account for at least one month, which will exclude a lot of people. To apply for the Lloyds debt consolidation loan, you must be at least 18 years old (not 21 like some competing banks) and you must live in the UK. In partnership with Loans Warehouse Who Can Apply for a Lloyds Debt Consolidation Loan? “Haven’t had too many problems in regards to doing my banking, however, the customer service isn’t very pleasant to talk to on the phone.” This might put some people off trying for one of their loans. We were unfortunately not able to find any reviews about debt consolidation loans specifically, but we did get mixed messages about the bank’s customer service. There is a chance that a debt consolidation loan is not the most advantageous debt solution and you may be able to find a better option from the various debt solution services. However, if you need to access bigger amounts over £10,000, you should speak with a UK debt charity first. You can access from £1,000 to £35,000 through a Lloyds debt consolidation loan. Lloyds offer personal loans that can be used for debt consolidation. Typical 10.8% APRC variable Lloyds Debt Consolidation Loan Overview The overall cost for comparison is 10.8% APRC variable. This includes the net loan, interest of £28,531.00, a broker fee of £3,400 and a lender fee of £795. Representative example: If you borrow £34,000 over 15 years at a rate of 8.26% variable, you will pay 180 instalments of £370.70 per month and a total amount payable of £66,726.00. Well that’s a full £2,916 more expensive over the entire term.įill out the short form below to access the best debt consolidation loan rates available from the UK’s leading lenders. That exact same loan at 5% is about £18 per month more expensive. If you get a £30,000 debt consolidation loan at 4% on a 15 year term, it’ll cost you £221 per month to pay back. More beneficial terms may include lower interest or even a repayment holiday to start with.Īlways research debt consolidation or get advice before going ahead! The true cost of a bad debt consolidation loan The new credit you take out must provide more affordable repayment terms so you can manage your repayments easier. You might take out a loan of £2,000 to pay off four debts totalling the same amount.īut you don’t just do this for no reason. You consolidate multiple debts into one bigger debt by taking out a new loan. Their personal loans are often used for debt consolidation purposes, but are these loans competitive? Debt Consolidation Loans in a Nutshellĭebt consolidation is exactly like it sounds. Today, they offer a selection of banking accounts and also offer mortgages and personal loans. It is also one of the oldest UK banks after being founded as a private banking business by a button maker and his partner in 1765. Lloyds is one of the big four banking institutions and often considered as the largest retail bank in Britain. Should you take out a Lloyds debt consolidation loan? We discuss these personal loans here and consider them against other high-street lenders.
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