When you’re thinking about borrowing money, one of the biggest decisions is how long you’ll take to repay it. With a long term loan, repayments are spread out over years instead of months. This usually means your monthly payments are smaller – which can make them easier to manage. But there’s a trade-off: the longer you borrow, the more you’ll pay in interest overall. So, are long term loans a good option for you? Let’s take a closer look.
A long term loan is any loan that lasts 12 months or more, sometimes stretching to 30 years or beyond (mortgages are the most common example). 1. Lower monthly repayments compared to short-term loans 2. You might get a lower annual percentage rate (APR) 3. But you’ll usually pay more in interest overall
When you borrow, your lender sets a repayment schedule. This shows:
How long you’ll be repaying
How much each payment will be
How much interest you’ll pay in total
Example:
Borrow £2,000 over 6 months → higher monthly payments, less total interest.
Borrow £2,000 over 5 years → much smaller monthly payments, but much more interest overall So the question is: do you want lower monthly costs now, or to pay less overall in the long run?
What can long term loans be used for? People usually take out long term loans for bigger expenses, such as:
Home improvements
Buying a car
Weddings or big life events
Debt consolidation (rolling multiple debts into one monthly repayment)
If you’re looking to bring debts together, you can explore debt consolidation loans to see if they could help simplify repayments. Types of long term loans Unsecured personal loans
Not tied to your home
Usually for £500–£35,000
Repaid over 1–7 years
Secured loans
Tied to your property
Typically £5,000–£500,000
Can be repaid over 1–30 years
If you don’t keep up repayments, your home could be at risk
Mortgages
A specific type of secured long term loan
Usually repaid over 25–35 years
Used to buy property
Pros and cons of long term loans
Advantages
Smaller monthly repayments
May get a lower APR
Easier to borrow larger amounts
Disadvantages
More expensive overall due to longer interest
A long financial commitment (your circumstances may change)
Secured borrowing risks your home if repayments are missed
Am I eligible for a long term loan?
It depends on:
The amount you want to borrow
Your income and existing debts
Your credit score
Even if your credit history isn’t perfect, you still have options. Some lenders cater for lower scores. You can check your chances using our free loan eligibility checker – it’s a soft search, so it won’t affect your credit score.
FAQs
Can I get a long term loan with bad credit?
Yes, though your choices may be more limited. Some lenders specialise in this area.
Do I need a guarantor?
Not always. It depends on the lender and your circumstances.
Can I repay early?
Sometimes yes, but check for early repayment fees before you commit.
Next steps: Find the right loan for you
Choosing between a short or long term loan comes down to your priorities:
Lower monthly payments → long term loan
Less interest overall → short term loan
You can check your loan options with ClearScore in just a few minutes. It’s free, won’t impact your score, and helps you compare what’s available before you apply.