Screenshot of Personal Loans Home Page Santander UK

Rainy days often need to rely on rainy day funds but when this is not enough, a personal loan is the next best thing. A personal loan provides consumers with a cash injection when they need it. The repayment of the loan takes place over a specified term to allow consumers a better cash flow. This is the ideal product for those who need some extra funds for an impromptu holiday or special occasion. Santander UK Personal Loans promises ease of access and competitive rates. This review takes a closer look to ensure they live up to the promise.

Personal loans are always a tough one to critique, but a bank that seems to know what they're doing is Credit Agricole.

About Santander UK

Screenshot of the History of Santander UK

An impressive balance sheet and customer base are the things that define this banking giant. Considered the Spanish Armada of the banking world, Banco Santander is a formidable force when it comes to expansion. The bank was founded in Santander, Spain in the mid-1800’s. Substantial growth and exploration to the south Americas provided the bank with the leverage it needed to set foot on other shores. London was the first location for a Santander UK branch, which was established in the mid-1900’s. Currently, the bank enjoys a sizeable customer base in the UK.

How To Make the Most of a Personal Loan

Personal loans are ideal for those who wish to improve their cash flow or even need to sort out a small emergency. There is also the fun side of a personal loan, which affords the consumer the opportunity to seek distant shores as they take a much-deserved vacation. A personal loan can also be burdensome if not properly managed.

Only Take What You Need

This is an important aspect to ensure that customers don’t overextend themselves financially. By taking more than they need, customers run the risk of overspending on items they didn’t need in the first place. They get stuck with an installment for an item they could have easily saved for.

Pay the Installments Like Clockwork

Not only is it a good idea to pay off debt in order to free up cash again, it’s also important to keep a good credit record. A good credit score is important for many things in life which include eligibility for other loans, rental or lease agreements, and even contracts. Another reason it’s important to stick to the installments is that late fees can be steep.

Try Not To Apply for a Readvance Too Often

It’s very tempting to have access to a loan, especially when the offer letter comes along in the mail. Rather try to pay off the loan instead of thinking of things to do with the money. Loans should rather be used in emergency situations as opposed to catering for luxury. Apart from keeping customers in debt, regular applications for loans may also affect a credit score negatively.

Think Carefully Before Using It To Settle Other Debt

What could be better than consolidating all debt into a single premium? Well, it turns out that although the single premium might be a little lower, it could mean that customers pay off over a longer term. This means that the loan could be more expensive in the long run. Where it does work well, is where customers have debt that has far higher interest rates and is still fairly early in the term.

Santander UK Personal Loans Product Offerings

Screenshot of Some Loan Options Santander UK

Home Improvement Loan

This is a simple personal loan type that allows customers to make the necessary changes to their property. Furthermore, customers are not required to access their mortgage to do this.

  • Customers enjoy a fixed interest rate for the duration of the term. This makes it easier to budget the installments.
  • The loan does not require customers to make an initial payment. Customers are only required to pay their first installment 30 days after acceptance.
  • Furthermore, this is a cost-effective loan type as there is no admin fee.
  • The loan type does not restrict the customer to what they’re allowed to do with the funds. Once the funds are in the account, customers are free to continue their renovations as they see fit.
  • Also, these loans enjoy a fairly quick turnaround time and customers could have an answer within 24 hours.
  • As there is no security on this loan type, the application criteria is pretty steep. Customers need to be over the age of 21 and also earn a minimum salary of £6,000 per annum. There are other credit requirements for this loan type as well.
  • Finally, the repayment term on this loan is between one and five years.

Debt Consolidation

This is the ideal loan type for those who find themselves struggling to juggle all their payments. Furthermore, certain conditions allow this loan type to be more favorable in the long term, however, not always.

  • Customers have the option to decide when they wish to make their monthly repayments.
  • The loan type allows customers to free up their cash flow by streamlining all their payments into a single payment.
  • This loan is particularly handy to those who have credit cards and store cards that have high interest rates.
  • Finally, this loan type provides customers with a quick turnaround time. They could have an answer within 24 hours.

Special Occasion

This loan type stands in the gap for those momentous occasions such as holidays and weddings. Customers who still require some funds to see them through will find this loan ideal.

  • The loan repayments on this loan can be between one and five years.
  • Furthermore, the interest rate is fixed which means customers can easily budget their repayments.
  • Customers are not required to make an upfront payment into this loan.
  • The loan type does not carry an admin fee.
  • There are some restrictions to the loan type as there is no security requested. Customers need to meet minimum criteria in order to be eligible for the loan.
  • Finally, the loan type enjoys a quick turnaround time and customers can have an answer within 24 hours.

Car Loans

This loan type is discussed in a separate review.

What We Like About Santander UK Personal Loans

There are very few financial needs that cannot be covered with these loans. This means customers are far more likely to satisfy their loan needs in-house. The loan types also span a few different categories which make it easier for customers to go on with their projects.

What we are excited about, is that customers can clearly see what they can use their loans for. Furthermore, the loan types are simple to understand as the website has all the information in easy-to-navigate tabs.                   

This is also a cost-effective way of raising capital, as the interest rates are very agreeable. There is also no admin fee, which makes it an affordable option.

Finally, the loans are fairly flexible and allow customers to make additional payments without penalties. Customers who find themselves cash-strapped once again a few months later can also take advantage of a further loan.

What We Don’t Like About Santander UK Personal Loans

This is a pet peeve we have with many of the institutions that offer multiple personal loans. The personal loans are all exactly the same, however, are packaged as different options. This creates the illusion that the bank offers a variety of loans when it actually only offers one.

A Santander UK Product that did really, was the insurance range.

Critical Reviews Rating Santander UK Personal Loans – 9 of 10

Screenshot of Loan Help and Support Santander UK

Although we tend to drop the rating for other product ranges that only offer a single product, the personal loan category is a little different. This is because all the needs of the personal loan customer can be met with the standard personal loan. We decided to only dock one point due to the single product that is duplicated on the website.

Some really favorable aspects of this loan type include the fact that customers have a choice of what they use their funds for. The bank won’t restrict the use of the funds and once it’s in the customer’s account, they may disburse it as they see fit.

Another thing we like about the Santander UK Personal Loans is that the pricing is very reasonable. The interest rate is favorable and customers enjoy a tiered rate which reduces as the loan amount increases. There is also special pricing for those part of 123 World and Santander Select. The loans also don’t attract any admin fees.

Possibly one of the best features of these loans is the fact that customers may pay additional amounts and even settle the loan without worrying about penalty charges. This allows them to manage their debt more effectively. The loan amounts are usually between £1,000 and £20,000. Customers have between one and five years to repay the loans and they decide on a repayment date anywhere between the 1st and 28th.

Finally, customers who have paid off a substantial amount already and wish to take a readvance can do so with ease. The loan also grants customers with a fixed rate option which allows them to budget more effectively.

A review that baffled us a bit, was Santander UK Credit Cards.