Santander Personal Loans Review 2022 – Forbes Advisor UK

Our opinion

When it comes to borrowing a lump sum, perhaps to finance a one-off purchase or to consolidate debt, Santander is one of the leaders for personal loans – especially if you’re looking to borrow between £7,500 and £15,000 when interest rates are at their highest.

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What are the advantages ?

  • Market Competitive Representative APRs (Fixed)
  • No late payment fees (although late payments will negatively affect your credit score)
  • Available for new and existing customers

What are the disadvantages ?

  • Must be 21 or older
  • Some APR reserved for existing 1I2I3 World or Santander Select current accounts

Main characteristics

  • Representative APR of 2.80% (fixed) on loans between £7,500 and £15,000
  • Loans ranging from £1,000 to £25,000
  • Repayment terms between 1 and 5 years

Will I be eligible?

You’ll need to earn at least £7,500 a year to be considered for a personal loan of up to £20,000 in Santander, or at least £20,000 if you want to borrow more than that.

You will also need to be at least 21 years old and have a good credit rating. Santander will not at all consider applicants who have been bankrupt or have had a County Court Judgment (CCJ) or Individual Voluntary Arrangement (IVA) within the last six years.

If you are unsure if you would qualify for a Santander personal loan, using an eligibility checker before making a formal application will reveal the likelihood of being accepted without leaving a trace on your credit report.

What more do I need to know?

Before applying for a personal loan, it is important to compare the offers of the whole market. Once you’ve made a decision, familiarize yourself with the lender’s terms and conditions.

The fine print will include details such as if there are any charges for overpayments. In Santander’s case, you can overpay your loan each month without penalty, but you’ll pay up to 56 days’ interest if you repay your loan in full.

If you can’t find what you’re looking for in the fine print, contact the Santander Call Center on 0800 912 3123.

If your loan application is accepted (you can expect a decision within 5 minutes), Santander will send you a code (via priority mail) which you must enter online to release your loan funds. The funds will then be deposited into the bank account of your choice within the next two business days.

You will then have a withdrawal period of 14 days from the signing of your contract during which you can change your mind.

Is a Santander loan right for me?

It’s particularly worth taking out a Santander loan if you need £7,500 to £15,000, as you could be offered the most competitive APR of 2.80% (fixed). While this is representative, it means it will depend on your credit score and personal circumstances.

Since a personal loan comes with fixed monthly repayments, it is also a convenient option for budgeting.

If you intend to use your Santander loan to consolidate other debts, make sure it makes financial and practical sense.

What are my alternatives?

Personal loan terms can extend up to seven years with some other providers, so if you want to keep monthly repayments as low as possible, it’s worth considering these lenders. That said, going for the shortest term you can afford means paying less interest overall.

If you don’t qualify for a Santander loan, it’s worth trying other providers as eligibility criteria may vary. By using an eligibility checker every time, your credit score will remain intact. This is because eligibility checkers only run a “simplified search” that does not appear on your credit report when other lenders come to view it.

Compare loans from major providers

Find the loans you’re most likely to be approved for, without affecting your credit score