# Personal loans in July 2026: compare total cost, not monthly payment

> Banking · 5 July 2026

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## Summary

With Bank Rate held at 4.25%, unsecured loan APRs remain elevated. Soft-search eligibility checks show odds without hard footprints — but compare total interest over the full term and check for early repayment charges.

Personal loans are regulated by the FCA. Advertised representative APRs apply to 51% of accepted applicants — your rate may be higher depending on credit history, income and loan amount.

Comparison sites use soft searches to show pre-approval odds. A hard search happens only when you apply. Multiple hard searches in a short window can affect scoring — use soft checks first.

Shorter terms mean higher monthly payments but less total interest. A £10,000 loan at 8% APR costs roughly £1,300 more in interest over five years than over three — always compare total payable, not just the monthly figure.

Early repayment charges apply on some fixed-rate loans. If you may clear debt early from a bonus or inheritance, check the small print before signing.

Consolidating credit card debt into one loan can cut interest if the APR is lower — but only if you stop spending on the cards. See our compare personal loans guide and loan repayment calculator.

## Related topics

- [/credit/](https://moneyguide.org.uk/credit/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Money Guide is not a financial adviser and does not currently earn commission on credit cards. This guide is educational information only — always check the issuer's own terms, eligibility checkers and fees before applying. 18+, subject to status. Credit is a commitment: only borrow what you can repay in full each month, because interest charges erase every reward on this page.