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Personal loans FAQs
Find answers to the most common questions about our personal loans.
Managing your loan
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You can make extra payments on top of your monthly amount online, by calling us or visiting a branch. How to make extra payments
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You can make extra payments on top of your monthly amount online, by calling us.
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Yes, you can. If you want to settle early, we'll give you a quote. We may also apply an early settlement adjustment to your loan. This means that we may charge up to 58 days' interest on the loan.
You’ll need to call us to make a loan settlement over £25,000. This is because of current account payment restrictions.
Yes, you can. If you want to settle early, we'll give you a quote. We may also apply an early settlement adjustment to your loan. This means that we may charge up to 58 days' interest on the loan.
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If you've signed up for Online Banking, you can see your current loan balance online. Please be aware, that this may not be the amount you need to repay if you want to settle your loan early. If you want to settle your loan early, you can ask for an early settlement quote in Online Banking.
If you'd rather talk to someone, give our Customer Services team a call. They'll tell you your balance and will be able to give you your final settlement figure.
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If you find that you can't keep up with your payments, you should let us know as soon as possible. We'll do what we can to help and offer advice on how to get back on track.
If you’d like further free independent help and advice, check out our support guide.
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Yes, you can ask to borrow more at any time, subject to approval.
If you want to borrow more to refinance existing debts, you could pay a higher rate of interest or make repayments over a longer term. This could increase the total amount of interest you pay.
You can either:
- Take out another loan and pay it back separate to your existing loan.
- Close your existing loan and replace it with a new, larger one. This means you’ll have just one monthly repayment.
Please note that when we work out the amount you need to repay your existing loan in full, we may include up to 58 days’ interest.
If you have a Halifax bank account, you can either sign into Online Banking or call us to ask to borrow more.
If you don’t bank with us, you can apply for another loan online. If you want to close your existing loan and replace it with a larger one, you should call us.
- Take out another loan and pay it back separate to your existing loan.
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If you've an existing loan account with us, you can tell us of any changes to your details here.
Moving abroad
You must be resident in the UK (except for the Channel Islands and the Isle of Man) to be eligible for a Halifax Personal Loan.
If you’ve got a loan account with us but move outside the UK in the future, you must let us know as it may affect your ability to hold the account or the services we can provide. We’ll contact you if we have to close your loan account.
Halifax is part of Lloyds Banking Group. If you have products with other companies within the Group, moving outside the UK may also affect whether you can continue to hold those.
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You can ask for a one month repayment holiday at any time. You'll have the option to apply for up to two non-consecutive repayment holidays in a rolling 12-month period, subject to approval.
You won't need to make your usual repayment during your repayment holiday, but we'll still charge daily interest on your loan balance. This means that you'll pay more overall, and your loan’s original term will be extended.
We'll tell you what the additional interest will be before we confirm and start your repayment holiday. You can also use the calculator to get an idea of how much extra interest charges are likely to be before you apply.
If you would like to take a repayment holiday, you'll need to let us know at least five working days before your next loan repayment is due.
You can ask for a one-month payment holiday at any time, as long as you are up-to-date with your loan repayments and have 30 days or more remaining on your loan term.
Applying for a personal loan
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You can apply for a personal loan if you:
- are age 18 or over.
- you live in the UK (except for the Channel Islands and the Isle of Man).
- you are in paid employment, or have a regular income.
- you are not a full-time student.
- you haven't had a request for credit turned down in the last month.
- you don't have a history of bad credit.
Our decision to offer you a loan is based on your individual circumstances.Learn more about loan eligibility.
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There are many ways you can use a personal loan. We find that most customers borrow for things like home improvements, such as a new bathroom or kitchen, or a new car. You might need some extra cash to cover an unexpected emergency, like a broken boiler. You could even make your dream holiday a reality.
Sometimes, a personal loan can also be a good idea if you're looking to consolidate your existing debts into one easy-to-manage monthly payment.
We won't lend for:
- Gambling
- Investments, such as stocks, shares and crypto currency
- Business reasons
- Land or property - buying, leasing or paying a deposit
- Timeshares or Holiday Clubs
- Anything illegal
- Gambling
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Before we can approve you for a Halifax personal loan, we need to ask a few quick questions.
We’ll ask:
- What is the loan for?
- How much do you want to borrow?
- How long will you need to pay it back?
- Are you aware of any possible changes in the future that may affect your ability to pay back the loan?
- Details of your income and expenses
And if you’re new to Halifax, we’ll also need some personal details.
We'll ask for your:
- Name, address and date of birth
- Email address
- Phone number
- UK bank account details.
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If you have a Halifax current account, you could ask to borrow up to £50,000.00. If you don't bank with us, you can ask to borrow up to £25,000.00.
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If you have a Halifax current account, you should receive the money instantly. In a few cases, money will be received up to 72 hours from when the loan documents are signed.
If you don't hold a current account with us, you should have the money in your account within 2 hours. Sometimes, it may take a bit longer to have the money in your account - but no more than three working days.
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Usually we give you an answer on the spot. Sometimes it may take a little longer if we need to ask you for any extra details to help us process your request.
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We'll ask you to choose a date to make your monthly repayment by Direct Debit. Your first repayment is due within one month of the date we provide the loan; however, if you choose a date that's within 9 days of us providing the loan, your first repayment:
- At the start of the agreement by debit card or;
- When the first Direct Debit is taken on your chosen date in the next month
If you wait until the next month for your first repayment to be made by Direct Debit, this will extend the period of your loan. This means that you would pay back more overall, as interest will be charged from the date you get the loan.
Understanding loans
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A personal loan is an arrangement to borrow money over a fixed term. The term is agreed for you to pay the loan back in fixed monthly amounts, at a fixed rate of interest. At Halifax, we offer personal loan repayment terms of between one and seven years. We work out the terms of the loan agreement based on several factors, such as the amount you ask to borrow and your monthly income and outgoings.
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With a secured loan, the lender will ask for something such as your home as security, in case you can't pay the loan back. Personal loans are unsecured, so you're not asked to provide anything as security. Rates for unsecured personal loans are worked out on the amount of the loan, the length of the loan, and credit scores.
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APR stands for Annual Percentage Rate. You'll see it as a percentage and it tells you how much it’s likely to cost to borrow money over one year.
It’s not just about the interest you’ll pay. APR factors in both interest and any fees that are automatically charged to your account. This gives you a good idea of the overall cost and is useful if you’re comparing loans or credit cards.
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When you're shopping around for a loan or credit card, the APR (Annual Percentage Rate) helps you to compare options and work out how much they will cost you in total.
A representative APR is the rate that most customers who take loans between £7,500 - £25,000 will receive.
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Most lenders base their decision to lend you money on your credit history. This is called 'credit scoring'. When you apply for a loan we look at the information you give us and other factors, such as how you manage other accounts you might have with us.
We also use other information from credit reference agencies such as Experian, Equifax or TransUnion. They keep records on your borrowing and payment habits, including how much credit you have outstanding and if you've missed any payments.
If you have a number of missed or late payments, you may be considered as 'high risk'. In these cases, we may offer a loan at a higher rate of interest or decline your request.
If you're worried about your credit rating, you can ask for a credit report from any of the credit reference agencies. Find out how to check your credit score.