What’s the cheapest way to borrow?

Enter how much you want and how long you'll need to pay it back to find your best borrowing option

Enter amount to borrow Between £100 and £10,000
 

About this calculator

This ready reckoner can help you find the cheapest way to borrow. It does not include secured loans or remortgaging because of variables such as arangement fees and loan-to-value ratios that will vary on an individual basis.

There are other borrowing options that could offer an alternative in some circumstances so always do a thorough conparison – for example, a better bet for you could be peer-to-peer lending, money transfer cards or guarantor loans, but these have also been omitted from the results as they are beyond the scope of the calculator.

A word of warning

  • SECURED LOANS: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE, LOAN OR ANY OTHER DEBT SECURED ON IT.
  • MISSING PAYMENTS ON A LOAN WILL HAVE SEVERE CONSEQUENCES AND MAY MAKE OBTAINING CREDIT MORE DIFFICULT IN THE FUTURE.
  • WARNING: LATE REPAYMENT CAN CAUSE YOU SERIOUS MONEY PROBLEMS. FOR HELP, GO TO MONEYADVICESERVICE.ORG.UK

While secured loans might appear to offer a cheap borrowing option, they are rarely the best option:

  • Your home may be at risk if you fail to keep up repayments.
  • Interest rates vary over the term of the loan.
  • Secured loans should be considered ONLY as a last resort – it is much better to take out an unsecured personal loan rather than one secured on your home.
  • Consider alternatives – if you have a good credit rating then consider a cheap credit card, personal loan or even mortgage extension. If you are considering a secured loan because of a poor credit history then first check all your other options and seek help from Money Advice Service.

How do we calculate the results

The comparisons provided are indicative only and assume that the principal and any interest will be repaid in full over the term of the loan. The cheapest option is based on the total interest payable on the loan principal over the term of the loan as of 29 May 2014.

The cost of these borrowing options is calculated according to the lowest representative APR on offer in each category (as of 29 May 2014). Since these rates are representative, only 51% of successful applicants will receive them. Your eligibility might be different and higher rates may apply. To see more accurate results tailored to your needs and give yourself the best chance of getting the deal you want, always compare all the suggested options using our comparison service and soft-search eligibility checking tool before applying for any credit card or loan.

To provide the results in this calculator we have made a number of assumptions: The maximum credit limit on a 0% purchase, low APR or standard credit card is assumed to be £7,500; The standard credit card APR of 17.31% is taken from Bank of England average credit card APR data as of 30/04/2014.

* The authorised overdraft rate is based on Barlcays Bank Account rates as of 29 May 2014 – Representative Example (applicable to a Barclays Bank Account): For the first 12 months: up to £5,000 – 0% interest per annum (variable); After 12 months: up to £5,000 – 19.3% interest per annum (variable). Payday loan rate is taken from Wonga representative APR as of 29 May 2014 – Representative example: Amount of credit: £150 for 18 days, Interest: £27.99, Interest rate: 365%pa (fixed), Transmission fee: £5.50, One total repayment of: £183.49, Representative 5853% APR.

The cheapest and other borrowing options provided by this tool are a rough guide only, based on the above assumptions, and may differ depending on the exact products for which you could be eligible. To see all key product information and APRs always do a full comparison.

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Who is TotallyMoney.com?

TotallyMoney.com is the UK’s only comparison site focused on comparing credit. Until now it has been complicated to understand the benefits of comparing credit – TotallyMoney.com has changed that. We’ve built a suite of tools that make comparing loans, mortgages and credit cards simple. This means that whoever you are, you can get individually tailored results that show you the best possible product, based solely on what represents the best value for you. We are the credit comparison experts.

  • You can compare every leading credit card and loan and get impartial results.
  • You will see personalised savings - the average saving on balance transfers is £708.
  • You can quickly and easily check your eligibility with a no-risk soft search on your credit file before applying to double your chances of acceptance.