From the list covering 3 Months, we today double up to showcase the UK’s 6 month loan lenders by price. Taking this step up hands you with more manageable lower repayments. More interest overall will need to paid out, but the actual daily interest does drop. The rates here tend to float just above 0.4% whilst on 3 just over 0.5% is commonplace. So, it does make sense to opt with the extended option. The ability is of course usually there to settle early if you do change your mind. There is less market choice below. Here you’ll find 29 entries that isn’t quite as large as 3 that headed up to 40 listings.
Following on from the Payday Lender List, we’ll today move across to the instalment side of things. This will begin with a full list of the UK’s direct 3 month loan lenders by price and then in the follow up submission we’ll extend to 6 (See here). Unlike with payday firms, you aren’t likely to find price matching here. This is due to most instalment loan providers already charging less than the 0.8% daily interest cap. In general, the big names tend to charge just over 0.5% daily, but there are better deals available as you’ll see below. There is lots of choice when opting for this term with a current total of 40 brands listed.
Here is our first complete lender list. This page will showcase all of the active payday loan lenders in the UK by price. The current brand count is 36 and so there is plenty of choice for those seeking short term funding. The payday niche has a bad market reputation. This has been improved somewhat by the introduction of price capping and increased regulation from the FCA. You’ll not pay any more than £24 per £100 over 30 days (0.8% daily). One problem faced when it comes to comparing products is that many companies have opted to fix their pricing at the cap and so you only have just over 10 cheaper deals out of close to 40.
In the latest comparison we analysed the top 10 prices at 3 months. We have today moved on to 6 month loans where the public demand is greater and there are more lenders targeting this particular instalment niche. It was the Lending Stream who were the first company to get the ball rolling when they launched back in 2008. At this time the subprime landscape was mostly dominated by PaydayUK and QuickQuid. Wonga soon became the market leader through their more flexible short term product. In the background, Lending Stream was becoming more popular and other firms were starting to model themselves on their product with UK Lenders Alliance being one such example.
A 3 month loan is an ideal substitute of a payday loan. Repaying a few hundred pounds over a single month can be tricky for those living on a tight budget. The same customer should fair much better when the balance is spread across 3. This is boosted further since the interest rate itself is lower. This is either lower by standard or through the capped rate (0.8%) cutting against a reducing balance. There aren’t that many lenders that specifically target this niche. One such firm that has done over the years has been WizzCash. The majority of instalment lenders tend to offer 6 months or more, that just means in the process that 3 becomes an option.
The UK’s payday loan industry has been in dire straits since the FCA rolled out price capping in early 2015. Every lender from this point onwards could charge no more than 0.8% daily. This was a total cost and so this includes interest plus any associated fees such as for quick transfers. Some firms closed, some moved away from the single month whilst others tended to meet the cap head on. This meant that the majority of providers charged £24 for a £100 loan over 30 days. As you will see below, there are fortunately a selection of cheaper deals available. We are aware of just the 10 featured brands that ask for less than 0.8% per day.