Compare long term loans

Long term loans allow you to pay back the money you borrow over a longer period, making them more affordable each month.

This is typically used to mean a loan with term of longer than a year, but some long term loans last for several years or even decades, such as secured loans or mortgages.

Spreading the cost over a longer period will mean you have lower monthly repayments. However, bear in mind that longer-term loans will be more expensive overall because you’ll end up paying more interest. 

This is because, even if you get a good interest rate by choosing one of the best long term loans, the fact that you’re borrowing for longer means you’ll pay interest for longer.

You can get long term loans from banks, high street loan companies, or specialist lenders. Whether they will be happy to lend to you depends on their lending criteria and your circumstances and credit score.

Taking out a long term loan is a big decision and commitment. You could be making repayments for several years and it’s hard to predict how your finances will fare from one year to the next.

What if you change jobs? What if you lose your job? Nobody knows what the future holds, so it’s worth bearing this in mind before you commit to a long term loan.

That doesn’t mean a long term loan isn’t right for you, after all people regularly take on mortgages of 25 years or more. But it does mean you need to think carefully about affordability in the future.

The best thing you can do is research longer-term loans thoroughly and make sure you fully understand the advantages and disadvantages of taking one out before going ahead. It’s also important to shop around and find the best possible interest rate to keep costs down.

The cost of long-term loans can vary widely depending on several factors, including the type of loan, the lender, your creditworthiness, and the current economic conditions.

The longer the term of your loan, the less you'll pay in monthly repayments, but you'll end up paying more in interest overall.

It comes down to what's more important to you at the time — low monthly payments, or total interest paid.