Loan.co.uk is an online loan broker, offering a range of loan types from 130 lenders. The Loan.co.uk platform uses AI to compare thousands of loans, and recommends suitable deals based on your circumstances.
Pros
- Get tailored loan recommendations
- Wide range of loan types
- Loans from 130 lenders
- Access exclusive rates
Cons
- You may find lower rates elsewhere
- Broker fees apply
Key features
- Compare loans from 130 lenders
- Apply to borrow between £15,000 and £1.5 million
- Secured and unsecured loans available
- Access exclusive rates with certain lenders
- FCA-regulated.
What is Loan.co.uk?
Loan.co.uk is an online loan broker, which has been operating since 2014. It matches customers with competitive rates based on how much they want to borrow and their circumstances.
Unlike traditional brokers, Loan.co.uk uses artificial intelligence software (the company refers to it as Albot) to search through over 5,000 different loans. The broker has partnerships with 130 lenders, some of which offer exclusive rates to Loan.co.uk customers.
As with any broker, Loan.co.uk levies a fee when you take out a loan through its platform. It aims to make its charges competitive relative to the rest of the market.
Fees are not disclosed on Loan.co.uk’s website and the charge will vary depending on the type and size of your loan. But for a £30,000 secured loan, for example, there is a flat rate broker fee of £1,770. There is also likely to be a lender fee for the loan on top, which will vary depending on the loan provider.
A secured loan is one where you pledge an asset, usually your home, as security. This means your property is at risk if you default on repayments, and it may be sold to repay the debt.
Loan.co.uk has a reputation for excellent customer service, with an average rating of 4.9 stars on independent review site Trustpilot, based on more than 960 reviews.
The service is regulated by the Financial Conduct Authority (FCA).
Will I be eligible for a loan with Loan.co.uk?
Loan.co.uk aims to match you with an appropriate loan based on how much you want to borrow, for what purpose and according to your circumstances.
The broker says it can help you find a loan even if you don’t have a good credit score.
However, you won’t be eligible for a secured loan if you don’t own a property or other valuable asset that can be used as security. There’s also no guarantee you’ll be accepted or offered the lender’s representative interest rate when you apply.
Bear in mind that, once you officially apply for any sort of credit, the application will appear on your credit report and could have an impact on your credit score.
What kind of loan could I get?
Loan.co.uk offers the following types of loan:
- Secured loan — a personal loan that allows you to borrow money ‘secured’ against an asset such as your home. These loans are sometimes known as a second charge mortgages
- Mortgage — a loan to buy a home you intend to live in
- Buy-to-let mortgage — a mortgage designed for the purchase of property you plan to let out
- Bridging loan — a short-term property loan, used to ‘bridge’ financial gaps, often when there’s a delay between buying one property and selling another
- Development loan — a loan towards the cost of developing a new or existing property
- Unsecured personal loan — a loan that isn’t secured against an asset such as your home.
How do I apply to borrow through Loan.co.uk?
To find a loan through Loan.co.uk, you’ll need to select the type of loan you want and enter personal details including:
- Name
- Age
- Address
- Contact details.
If you’re applying for a mortgage or secured loan, you’ll also need to provide information about the property you intend to purchase or secure a loan against, such as its value and the level of equity you have.
Once you’ve entered your details, Loan.co.uk searches through its database to match you with the lowest available rate for someone in your circumstances.
If you’re applying for a larger loan, a representative will get in touch to discuss options once you’ve requested a quote.
Getting a quote from Loan.co.uk is free. This stage only involves a ‘soft’ credit check, and does not impact your credit score.
If you decide to go ahead with the loan you’ve been recommended, the next step is to submit an official application.
Loan.co.uk will guide you to set up repayments. You can contact the broker with any issues throughout the loan term.
Is borrowing through Loan.co.uk right for me?
If you want to streamline the loan application process while avoiding high broker fees, Loan.co.uk is worth considering.
The platform matches you with a suitable loan and recommends the lowest interest rate you’re eligible for. You may also find it useful to have a Loan.co.uk representative on hand to support you through the application process.
However, the broker may not be the right option for your needs if you prefer to apply for credit in person, since you’ll only be able to provide details and receive recommendations online.
It’s also worth bearing in mind that, while Loan.co.uk has partnerships with many different lenders, you won’t necessarily get the best rate on the market. You’ll also be charged a fee for using the service.
Approaching a lender directly would allow you to sidestep these fees, but since you may end up paying a higher interest rate, you might not save money overall.
What are my alternatives?
If you want to take out a loan online, one alternative to Loan.co.uk is to request a quote from providers directly, or use a price comparison website.
When it comes to borrowing smaller amounts, a credit card with a 0% introductory rate is an alternative that may be worth considering. These cards allow you to borrow interest free, provided you pay off your balance in full before the introductory 0% period is over.
Interest-free periods usually last between 12 and 24 months.
If you opt for a 0% interest credit card, watch out for any balance transfer fees, and make sure you clear your balance before the interest-free deal ends if you can.
