£50,000 Loan Guide: How to borrow 50,000 pounds

The Freedom Finance £50,000 Loan Guide: How to borrow 50,000 pounds

Are you looking for a £50,000 loan?

Maybe you’re planning to make some home improvements, buy a new car or consolidate some existing debts?

While the prospect of borrowing a large amount of money may seem daunting at first, it doesn’t need to be—and we are here to help.

In our complete guide to £50,000 loans, we’ll get you up to speed on everything you need to know to find the best loan for your needs.

What are my options for borrowing £50,000?

As a higher borrowing amount, options like unsecured personal loans and credit cards won’t be suitable in this case.

Generally speaking, you will be looking to borrow £50,000 through one of the following methods:

Homeowner loans

Secured homeowner loans that tie the debt to your property. By securing the debt against your home, lenders will be more comfortable with lending higher amounts over longer periods of time. If having a longer repayment period with lower monthly repayments is preferable, then this is an option to consider.

  • Borrow amounts from £5,000 to £500,000+
  • Terms of 1-30 years
  • Can be used for any loan purpose
  • Don’t need to remortgage
  • Receive advice on your best loan option
  • Available to homeowners only

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Execution-only homeowner loans

An execution-only homeowner loan might be preferable if you’re a homeowner and you feel comfortable not receiving advice about your loan options. It is called an “execution-only” loan because you are not receiving any advice on whether it’s right for you. These are secured loans that put the control in your hands from start to finish, with no additional fees and no need for professional advice calls.

  • Borrow amounts from £10,000 to £50,000
  • Terms of 4-10 years
  • Available to homeowners only
  • Home needs to be worth £70,000 or more
  • Can’t be used for debt consolidation

Again, remember that your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Remortgaging to release equity in your property

If you own a property and would rather not take out a new loan, then remortgaging could be an alternative option to raise the £50,000.

Remortgaging to release equity means that you’re securing a loan to free up cash that would otherwise be tied-up in your home.

By remortgaging, you’re essentially borrowing more against your property to access additional funds. As a result, your mortgage will increase and your monthly repayments will typically go up.

This means that you’ll be taking on more debt so, as always, it’s important to carefully consider whether it’s affordable in the long-term. If you’re not able to keep up with the new mortgage repayments, you could risk losing your home.

Where can I get a £50,000 loan?

Loans are offered by loan providers, companies that lend the money and then get it back in repayments with interest, according to a set of terms agreed with the borrower.

The number of loan providers out there is vast, each with different benefits and considerations to think about. This can often seem like a bit of a minefield and, with so many options available, it’s difficult to know where to start.

As a broker, we help to make this easy for you. Our eligibility checker allows you to search and compare a variety of lenders, making it easier to find one that’s right for you.

Am I eligible for a £50,000 loan?

Your eligibility to borrow will come down to the specific criteria set by the lender that you are applying to.

Having said that, you will need to be a homeowner if you want to borrow £50,000. This is because the value is high and lenders will need some assurance that they can recoup their money if you are unable to repay it.

Beyond home ownership, other criteria that lenders will typically check include:

  • Your credit history or credit score
  • Your income
  • Your debt to income ratio (the amount that you already pay towards debts)
  • Loan purpose (such as debt consolidation, or making home improvements)

The easiest way to check your individual eligibility is with our free eligibility checker tool. Just enter some basic information and we’ll suggest lenders that fit your needs and circumstances.

Can I get a £50,000 loan with a bad credit score?

Your credit score is a representation of your past borrowing, based on your credit report. Lenders use your credit history to evaluate you as a borrower and inform their decision on your loan application.

If you have a strong history of borrowing large amounts and repaying on-time, then lenders will be more comfortable offering you the full amount and favourable terms.

If you have a lower credit score, it might be a sign that you have struggled to keep up with repayments in the past, or have a limited history of borrowing. This doesn’t necessarily mean that you can’t borrow. However, it may have an impact on the amount that lenders are willing to offer, or the terms of the offer that is made.

When you apply for a loan, lenders will run a hard check on your credit history, which means that it will appear on your credit report.

When you compare lenders with Freedom Finance, we run a soft check on your credit report. This means it doesn’t appear on your credit history, allowing you to browse £50,000 loans without hurting your credit score.

Borrowing as a homeowner with a low credit score

As mentioned earlier in this guide, you’ll need to be a homeowner to borrow a loan of £50,000. The benefit of a secured loan is that it will reduce the dependence on your credit score for evaluating your eligibility. As a result, it may help to improve your chances of approval and allow for a more manageable repayment plan over a longer period of time.

Can I apply to borrow £50,000 online?

While lower loan amounts can be applied for and received entirely online, higher amounts like £50,000 will require you to speak with someone during the process.

To start the process online, you can check your eligibility for secured and execution-only secured loans using our eligibility checker.

Once you’ve found a lender that you are happy with, you will then need to speak to someone during the application process itself.

With an execution-only homeowner loan of up to £50,000, you can waive your advice call. However, with any secured loan you will still need to speak to someone at some point in the process.

Once you make your application, the lender will evaluate your eligibility based on the information you provide. If they approve the application, they will then contact you with an offer, which will typically include the following:

  • The loan amount
  • The repayment term
  • Any additional fees or charges that you will need to be aware of
  • The total amount expected to be paid at the end of the repayment term
  • The legalities regarding the loan being secured against your property

You should carefully read through these terms and consider whether they meet your needs and are manageable. If you are happy to proceed, you can accept the loan agreement and the lender will send you the agreed amount.

Will I receive my loan on the same day?

While unsecured loans and credit cards for lower amounts can often be approved and received on the same day, secured loans require additional paperwork and take a bit more time as a result.

The average time for a secured loan is around 10 days, but it’s dependent on how quickly you send the required paperwork and other similar factors.

At Freedom Finance, we use an app called Nivo, which allows you to send documents for many lenders quickly and securely online.

Can I afford to borrow £50,000?

As outlined earlier in this guide, your loan agreement will set out a repayment schedule.

You will need to decide whether you can afford this. A good starting point can be to review your monthly outgoing expenses and how much you have remaining outside of these. If the amount you have left each month is both comfortably and reliably above the required repayments, then this is generally a sign that it should be affordable.

It’s important to make sure that you can afford to repay every month for the full duration of the loan, as any missed repayments might impact your credit score or lead to action from the lender.

If the monthly repayments look unaffordable, you could also consider a longer loan term. A longer repayment term would mean that your monthly repayments would be more manageable, but resulting in a higher total amount repaid at the end of the agreement.

What can I use my £50,000 loan for?

There are many use cases for loans, each with unique considerations to keep in-mind.

We’ve compiled helpful resources for some of the most common reasons for borrowing, explaining some of the additional considerations depending on your needs:

How do I repay the money I’ve borrowed?

Once you have received the loan, you will be required to repay it according to the agreement.

You might prefer to set-up an automated bank transfer or standing order shortly after your payday. This is a great way to give yourself peace-of-mind and ensure you always make the repayments on-time. This can help to avoid missing a deadline by accident, giving you one less thing to worry about each month.

Once you have repaid the loan in full, along with any interest and any other fees, the lender will be in touch to confirm that the loan has been repaid and your account has been closed.

Check your eligibility and start comparing £50,000 loans

Are you ready to borrow £50,000? Head over to our eligibility checker to see how much you’re able to borrow and start comparing lenders.

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