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Our guide on what to think about
Find out what your options might be, and how we could help you get the money you need.
Choosing the best borrowing option for you
The best borrowing option for you depends on things like what you need the money for and how soon you need it. Before deciding, it can be helpful to ask yourself:
What do I need the money for?
How much do I need to borrow?
When do I need it?
All lending is subject to application, financial circ*mstances and borrowing history. Terms and conditions apply to all. The amount we’ll lend you could be different to the amounts we’ve shown below. You must be 18 or over and resident in the UK to apply for lending with us.
Borrowing options
Arranged overdraft
An arranged overdraft is a pre-agreed limit on your current account that allows you to spend more than your balance.
Good for:
- Covering emergency spending or an unexpected bill
Things to consider:
- Arranged overdrafts often have higher fees and charges than other borrowing options, so they’re best for borrowing money for a short period of time.
Overdraft calculator
Credit card spending
Credit cards are a flexible way to borrow money. You can spend up to an agreed limit and pay it back in smaller amounts every month.
Interest-free period if you pay in full each month.
Good for:
- Potential incentives, like rewards and cashback
- Purchase protection on certain types of payment
Things to consider:
- You’ll need to pay back at least a minimum amount each month, or you’ll be charged a late payment fee
- Over time you might pay more in interest if you only pay back the minimum amount you owe each month
Compare our cards
Credit card balance transfer or money transfer
Balance transfers let you move money you owe on one credit card to another card.
Money transfers allow you to move money from your card’s credit limit to your current account to spend.
There could be a one-off fee for these options.
Good for:
- Varying your repayments if you need some flexibility
- If you move your debt to a credit card with a 0% interest offer you could pay back the money you owe quicker
Things to consider:
- You might be charged interest if you miss a payment or spend more than your credit card limit
- You might be charged a fee to make a transfer
- Offers can change, and they might not always be available
Transfer and offers guide
Loans
A loan lets you borrow money and pay it back in monthly amounts with interest added, over a set number of months.
Good for:
- Bigger, one-off purchases, or for consolidating debt you’ve already got
- Setting a budget, as your payments are the same each month
Things to consider:
- Loans are best for borrowing more than £1,000
- Loans aren't flexible like some types of borrowing, so you’ll need to pay back a set amount every month
Loans calculator
Borrowing more on your mortgage
Additional mortgage borrowing lets you borrow more money on your existing mortgage.
Speak to one of our mortgage advisers to find out if this could be right for you.
Good for:
- Big purchases like home improvements
- Spreading payments over a longer period of time
Things to consider:
- You can only borrow more money from your mortgage provider
- This borrowing is secured against your home, so it’s important you can afford the repayments as you could lose your home if you don’t keep paying them
- You might have to pay early repayment fees if you want to pay the money back quicker
Additional mortgage borrowing
| Arranged overdraft | Credit cardspending | Credit cardbalance or money transfer | Loan | Additional mortgage borrowing* | |
|---|---|---|---|---|---|
| Interest-free period |  | | | | |
| Amount you could borrow | Subject to application | £50 to £25,000 | £50 to £25,000 | £1,000 to £60,000 | £5,000 to £2million |
| Flexible repayments | | | | ||
| Fixed monthly repayments | | | | | |
| Purchase value | Low | Low to medium | Medium to high | High | High |
| Rewards and offers | | | | ||
| Purchase protection** | | ||||
| Early repayment fee | | ||||
| Short term | | | |||
| Long term | | | | ||
| Revolving credit | | | | ||
| Existing customers only | |  | |
*Additional mortgage borrowing is secured against your home, so your home is at risk if you don’t keep up repayments
**On payments from £100 - £30,000. Subject to terms and conditions
Jargon buster
Revolving credit
Revolving credit lets you borrow money up to certain credit limit that you can then use and pay back for as long as your account stays open. To make sure your account stays open you’ll need to keep making payments on time and keep your balance under your credit limit.
Purchase value
Low-value purchases are amounts you borrow and pay back in a short space of time. High-value purchases are ones that take you longer to repay.
Short or long term
Short-term borrowing is anything you pay back quickly, usually within six months. Everything else is called long-term.
Consolidating debt
Debt consolidation is when you bring together the money you owe in different places, like credit cards, loans or overdrafts, and pay it all back on one credit card or loan.
More jargon explained
