🇬🇧 United Kingdom / Loans Rates

UK Loans Rates & Limits 2026

Official rates sourced from Bank of England Monetary Financial Institutions interest rate statistics 2024, FCA data.

Last updated: 2026-06-27

Current Rates

Parameter	Value
Bank Of England Base Rate	4.25
Average Personal Loan Rate	8.9
Personal Loan Good Credit Min	6
Personal Loan Average Credit	15
Auto Hp Average Rate	9.5
Auto Pcp Representative Apr	8.9
Student Loan Plan2 Rate	7.1
Student Loan Plan5 Rate	7.1
Credit Card Average Purchase Rate	22.7

Parameter	Value
Personal Loan Min Amount	1,000
Personal Loan Max Amount	50,000
Personal Loan Max Term Years	7
Student Loan Plan2 Repayment Threshold	27,295
Student Loan Plan5 Repayment Threshold	25,000
Student Loan Repayment Rate Percent	9
Student Loan Write Off Plan2 Years	30
Student Loan Write Off Plan5 Years	40
Fca Apr Representative Advertising Rule Percent	51

›UK student loans are not like commercial loans: repayment is income-contingent at 9% of earnings above the threshold. They are written off after 30 years (Plan 2) or 40 years (Plan 5). Many graduates never repay the full balance.
›The FCA requires lenders to display a 'representative APR' that at least 51% of successful applicants receive. The actual rate offered depends on individual credit profile. The advertised rate is a minimum, not a guarantee.
›PCP (Personal Contract Purchase) car finance has lower monthly payments than HP because a portion of the car's value (GMFV) is deferred. At the end: pay the balloon, hand back the car, or trade up. Most customers roll into a new PCP deal.
›Credit unions cap interest rates at 3% per month (42.6% APR). Many offer loans from 12–30% APR for members, which is lower than high-street lenders for those with imperfect credit.