Since you know how long you need to pay back what you want to borrow, follow these three steps to find the right loan:

  1. 1.

    Decide how much you need to borrow: There are plenty of two year loans for between £1,000 and £25,000. If you need to borrow more, it may be possible but choice is limited. Try to borrow no more than you need to as it costs more in interest.

  2. 2.

    Look for the lowest interest rate: This is the main cost of your loan. You can use this comparison to compare interest rates for two year loans.

  3. 3.

    Check the loan details before you apply: Make sure you can afford the payments and meet all the lender's rules. It is also a good idea to check your credit record is accurate before you apply too.

You can use our loan repayment calculator to get a quick estimate of how much your monthly payments could be.

Is 24 months still the right term?

Once you know how much the monthly payments could be it is worth double checking if a two year loan is still the best choice:

  • If you find that the monthly payments are bigger than expected you could make them more affordable by choosing a longer term loan, although you will normally pay more overall.

  • If you find that the monthly payments are smaller than expected you could save money by choosing a shorter loan term, just make sure you can still afford the payments each month.

For example, if you borrow £2,000 with an APR of 5% over 2 years the monthly payments would be £87.64. Change the term to 3 years and they drop to £59.84.