One of the benefits of looking around at the marketplace before you take the step of applying for a loan is that you'll get an impression of what is available, the types of deals being offered and what really can be regarded as a cheap loan. Let's consider what we mean by a "cheap loan". The most important figure to look at is the total cost of repaying the loan.

All too often people look at the monthly repayment figure and if it's lower, then it's considered to be cheaper. Not so - with a loan the monthly repayment on a similar sized loan will vary depending on the repayment term, whether any insurance is included and the impact of any additional charges. Often you will see a figure indicating the APR (Annual Percentage Rate) of the loan. This figure is designed to give an overall indication of the cost of the loan - it takes into account not only the actual interest rate being charged but also factors in any other charges.

Full range of cheap loans products available for homeowners and tenants with a focus on customer service.

APPLY

Quickly and easily search and compare 100s of products. Special offers include payment breaks and cash back.

APPLY

Borrow from £5k to £100,000. Home owner and bad credit specialists. Quick decisions made on cheap loans.

APPLY

Lenders are also required to show their typical APR on any advertising - for some lenders this figure can be higher but it doesn't necessarily mean they will charging you any more for a loan than another lender. They are required to show this figure to indicate that more than 66% of the people who make a successful application will qualify for this rate or less. And that's the important point - if the typical APR looks high, then the company probably provides a wider range of products, some with lower interest rates and some with higher rates. so the chance you will qualify for a loan is liekly to be higher with these lenders.

Also remember that what looks like a cheap loan as far as the APR is concerned, may not be particularly well-suited to every individual. Loans with the keenest rates of interest can sometimes be inflexible and have additional penalty clauses if the loan is repaid early. If you think that this may apply to you - and remember that very few loans run their full course - then read the conditions of your loan very carefully before you sign any documents.