Personal loans FAQs

Who can apply for a Halifax Personal Loan?

You can apply for a loan if you:

• are aged 18 or over.
• you live in the UK (excluding 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.

What could I use a personal loan for?

There are many ways you can use a personal loan, however there are exceptions (please see below for a list of these).

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.

In some cases 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 will not lend for:

• Speculative purchases, for example: gambling, investments and share purchases
• Any illegal purposes
• Business related purposes
• Purchase/Lease of land or property, either full or part purchase (including deposit)
• Timeshares/Holiday Clubs

These limits apply whether you want to borrow money for yourself or to help support someone else. For example, you can't borrow to give a family member a property deposit.

What do I need to apply for a personal loan?

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 & date of birth
• Email address
• Phone number
• UK bank account details.

How much could I borrow?

If you have a Halifax current account you could ask to borrow up to £35,000. If you don't bank with us you can ask to borrow up to £25,000.

How quickly can I get the money?

If you have a Halifax current account, you should receive the money instantly. In a small number of 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 24 hours. In some cases it may take a bit longer to have the money in your account - but no more than 5 working days.

How long does it take to get a decision?

In most cases 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.

How do I set up my repayments?

We'll ask you to choose a date to make your monthly repayments 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 will be due on that date in the following month. We charge interest from the date we provide the money to you.

What is a personal loan?

A personal loan is a 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 a number of factors, such as the amount you ask to borrow and your monthly income and outgoings.

What is an unsecured loan?

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.

What is APR?

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.

What is "Representative APR"?

When you're shopping around for a loan or credit card, the APR (Annual Percentage Rate) helps you to compare options and workout 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.

What is credit scoring and how do you use it?

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.

More information on credit scoring and how we use it.

Can I make additional payments?

Yes, you can make extra payments on top of your monthly amount and we won't charge you for doing so. This will reduce the total amount of interest you’ll pay and could reduce your loan term.

Remember to continue to make your monthly repayments, even if you make additional payments.

How do I make additional payments?

If you have a Halifax bank account:

Sign in to Online Banking and select your loan from the account overview page. From there you can follow the instructions for additional payments.

You can make online payments from any Halifax current or savings account.

If you haven't registered for Online Banking yet, it only takes a few minutes to sign up and you'll be able to manage your loan online.

If you'd rather speak to someone, come and see us in your nearest branch or call us on 0345 604 7292. Lines are open 8am-10pm, 7days a week.

If you don’t have a Halifax bank account:

You can make additional payments over the phone. Call us on 0345 604 7292 (lines open 8am-10pm, 7 days a week). You can make payments from any UK bank or building society account.

Or, whether you have a Halifax current or not:

You can pay from a current account, in the same way you pay a bill or a person. Please use these payment details:

Account number: 90000468

Sort code: 77-77-90

Reference number: this is your 12 digit loan account number - you can find this on your Internet Banking or any letters about your loan you've received from us.

Can I repay my entire loan early?

Yes, you can, but we may charge you up to 58 days' interest (this charge doesn't apply to Clarity Loan customers. Please note: we do not offer Clarity Loans any more).  

How can I find out how much is left to pay on my loan?

If you've signed up for Online Banking, you can see your current loan balance online. Please be aware though 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 and they'll tell you your balance and will be able to give you your final settlement figure.

What should I do if I fall behind with my payments?

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 more advice, try one of the numbers below. These organisations should be able to answer your questions and offer advice.

Citizens Advice Bureau.

PayPlan (0800 917 7823).

Stepchange Debt Charity (0800 138 1111).

National Debtline (0808 808 4000).

Can I borrow more if I need to?

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 an additional loan and pay it back separately 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 will include up to 58 days’ interest. This does not apply when refinancing a Clarity Loan or Personal Loan with us.

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 an additional loan online. If you want to close your existing loan and replace it with a larger one, you should call us.