When you’re looking for a loan of over £50,000, your options are more limited than with smaller loan amounts. Use our guide to get an idea of what’s out there for you and how to find it, and how to make sure you don’t pay more than you have to.
It’s possible to get your hands on a £60,000 personal loan, but you’ll need to secure a loan of this size against a property, which means you’ll likely only be able to borrow £60,000 if you own a house.
When applying for large loans, it’s also especially crucial to have your finances in order. If you’ve got a healthy credit score and a decent amount of equity in your property, it will make the process much easier and improve your chances of getting approved.
It’ll be hugely beneficial when it comes to finding the best available deal too. After all, even the smallest difference in interest rates can make a significant impact on the overall cost of a loan this size, so getting the best rate can save you a lot of money.
When borrowing a sum of £60,000 or more, your lender will insist the loan be “secured” against a property. This essentially means your lender has the right to repossess your property if you fall too far behind on loan repayments. In nearly every way, this type of loan works the same as a second mortgage, although there are no conveyancers needed.
The lender will need to research your finances and the property you’re hoping to secure the loan against. This process will begin with a telephone interview, followed by a formal offer, then a valuation of the property. Your lender will need to obtain permission from your mortgage provider to finalise the loan.
You can expect this entire process to take around three weeks.
You can get a £60,000 loan for any worthwhile purpose. Loans are often used for the following reasons:
Your monthly payments on a £60,000 loan will vary based on both the rate you receive and the length of your loan term. You can compare the payments based on interest and terms below. The 5 and 10 year loan terms are one of the more popular options among borrowers.
| 4% p.a. interest | 8% p.a. interest | 12% p.a. interest | |
|---|---|---|---|
| 5-year term | £1,105 | £1,217 | £1,335 |
| 8-year term | £731 | £848 | £975 |
| 10-year term | £607 | £728 | £861 |
| 15-year term | £444 | £563 | £720 |
| 20-year term | £364 | £492 | £661 |
| 25-year term | £314 | £452 | £604 |
You can use our loan calculator to compare a range of £60,000 loans.
| 4% p.a. interest | 8% p.a. interest | 12% p.a. interest | |
|---|---|---|---|
| 5-year term | £66,299 | £72,995 | £80,080 |
| 8-year term | £70,210 | £81,427 | £93,616 |
| 10-year term | £72,897 | £87,356 | £103,299 |
| 15-year term | £79,886 | £103,210 | £129,618 |
| 25-year term | £87,261 | £120,447 | £158,556 |
The loan illustrations above use approximate figures and are based on a fixed interest rate. If you receive a variable rate on your £60,000 loan, your monthly payments are likely to change over time, so you may end up paying more or less depending on how the rate changes. It’s also worth keeping in mind that current interest rates are at historically low levels.
You can use our loan calculator to compare a range of loans from popular lenders, based on monthly payment size and APR. Simply enter in how much you want to borrow, how long you want the loan for, the value of your property and mortgage, then we’ll find you the loan that could best suit your situation.
Yes, when you take out a secured £60,000 loan, you’ll almost certainly incur some fees. These are typically added to the amount borrowed. These can include a product or application fee, a broker fee, or a valuation fee for the survey that is conducted on your home to determine its value. However, fees will vary between lenders.
This will vary between different lenders and the minimum income requirement will only be one of the criteria you’ll need to meet in order to be eligible for a £60,000 loan. When considering your application, lenders want to see evidence that you’ll be a responsible borrower, which extends beyond how much you make.
For example, someone with a salary of £20,000, but who demonstrates good financial habits and has low outgoings, may be just as likely to get a loan as someone who earns £50,000 but who also spends a lot each month.
You could potentially get approved for an unsecured £60,000 loan within days, but almost all loans of this size will require you to use an asset as security, which will extend the application process. It can often take two or three weeks for a secured loan to be approved and funded, as the lender will need to have a valuation carried out on your property.
Loan terms range from as little as 1 year right up to 20 years or more. You can tailor your loan term to make your monthly repayments affordable. You can change your loan term to make your monthly repayments more affordable or can increase the size of your monthly repayments to pay off your loan quicker. As a general rule of thumb, the longer the loan term, the lower the monthly repayments, but the higher the overall cost.
Yes, you can generally pay off your £60,000 loan before the end of your loan term, but it’s likely you’ll need to pay an early settlement fee to do so. This fee can vary based on how much you still need to repay, as well as the terms of your original loan.
Potentially, yes. Thanks to the reduced risk to the lender that a secured loan provides, your credit score is less of a be-all-and-end-all. Realistically, the very lowest rates being advertised on the market might not be attainable with bad credit, as rates are tailored to the applicant. However, secured loans are a popular way for people with bad credit (and a home) to avoid paying extortionate interest rates.
You can get your hands on a lump sum of £60,000 by remortgaging to pocket some of the equity built in your property. This is most likely to be more cost-effective than a personal loan when mortgage rates are low. To find the best deal, compare the total amount you’d have to repay on a remortgage deal with the equivalent amount of your personal loan.
If you’re looking for a £60,000 loan to buy a car, you might be able to borrow through an alternative route. Take a look at our guide to car loans and finance options to find out more.
If you’re borrowing £60,000, it’s really important to make sure you get a loan you can afford, so you don’t risk losing your home, or whatever asset you’ve used as security. So before you start filling in that application form, get your credit score in the best shape it can be, and make sure you shop around for the best deal.
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If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
A secured loan can help you consolidate your existing debt by offering lower rates and more flexible loan terms.
Short term secured loans let you borrow up to £2.5 million with more competitive rates but also help keep your overall interest costs down.
Find out how fast you can get approved for a secured loan, and compare a range of secured loan quotes now.
A secured loan can help fund any home improvements you have planned. See how it works here.
A secured loan lets you use the equity in your house as collateral against the loan, even if you have bad credit. See how it works in our guide.
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