Large personal loans explained

Got a big expense coming up or looking to fulfil a lifelong dream? A large personal loan could help you finance a big life event.

Big plans coming up? Whether you’re getting hitched, planning a worldwide adventure or renovating your home, a large personal loan could help you cover the cost.

You can pay back your loan, plus any interest, over a set term with monthly payments that work for you.

But, with any loan, it's important to make sure you can afford to repay the money you borrow as you may have to pay a fee if you miss a repayment. This can also harm your credit score and your ability to borrow in the future. Remember, the longer you choose to pay back your loan, the more interest you'll pay overall.

Common large personal loan uses

There are many events in life you might need a large loan for. Some of the most common ones include:

Large personal loans for weddings

Wedding planning can often mean costs quickly add up – from securing the venue to booking the catering and organising all the little details to make the day your own. A large loan can help ease the financial stress while you make your dreams a reality. Be mindful, you should only borrow the amount you need and can afford to pay back.

Large personal loans for home renovations

Renovating your home can be costly and unexpected expenses can quickly add up.

Some properties can also have a few surprises you don’t see coming, from leaky pipes to questionable wiring.

A large loan could help you fund anything extra that crops up along your renovation journey and means you wouldn’t need to delay your project.

Large personal loans for debt consolidation

Consolidating your debts can be a good way to take control of your finances.

A large loan could help you pay off debts from multiple providers and, while the amount of debt you’re repaying isn’t reduced, it could become easier to manage as a single monthly payment.

You might be able to get a lower interest rate but make sure you check the repayment terms, as you could end up paying more in interest if you take it out over a longer term.

A large personal loan can be a longstanding commitment, so you’ll need to think about a few things first, including:

how much you need to borrow
how long for
what the interest rates will be
how your financial situation might change in the future

A large loan could help you finance big life plans and pay them off monthly at a cost that feels comfortable.

Bear in mind, while rates can often seem more favourable the more money you borrow, you should only borrow the amount you need and can afford to pay back.

Usually, you’ll need to have a good credit rating to be accepted for a large personal loan. Lender’s like to see a higher rating as it shows you’re responsible when it comes to borrowing and repaying money. If you have a lower credit rating, you may be seen as riskier to lend to and may need to look at shorter repayment terms or borrowing less money.

How to get accepted for a large personal loan

There are a few things you can do which may boost your chances of being approved, including:

Your income

Lenders must do an affordability check when they receive a loan application to make sure you can afford the repayments.

Having a regular income can help a lender see if you’ll be able to make the monthly repayments.

Credit score

A good or excellent credit rating can show lenders you’re reliable at borrowing and repaying money.

A good credit score is usually required when applying for a large loan and could lead to more favourable interest rates.

Remember, the amount you can borrow and interest rate you’re offered will be based on your personal circumstances.

Large loans FAQs

Can you repay a large loan early?

Depending on the provider and terms of your loan agreement, you may be able to repay your loan early. Make sure to check if there are any early repayment charges before doing so.

At first direct, you can repay your loan in full at any time by giving us notice, either by telephone, in writing or on our App.

We'll give you a settlement figure, and as long as you pay this in full, we can close your loan account.

If you choose to repay your loan early, there could be a reduction in the amount of interest you have to pay, and this will be reflected in your settlement figure.

Is there anything you can't use a large loan for?

You can use a first direct loan for lots of things, but there are some things we don't offer loans for, including:

buying property or land in or outside the UK, including holiday homes and apartments
buying a joint stake in a property
buying out a joint owner
a mortgage deposit (regardless of the lender or country)
gifting funds to support the purchase of a property, including mortgage deposits, stamp duty and solicitors' fees

A Personal Loan also shouldn't be for gambling, business purposes or sharedealing.

Can you make overpayments on a large loan?

You may be able to make overpayments on your loan, depending on the loan provider and the terms of your loan. This can help reduce the amount of interest you’ll need to pay over the overall loan term.

Make sure to check if there are fees for making overpayments.

Large personal loans explained

What can I use a large loan for?

Common large personal loan uses

Large personal loans for weddings

Large personal loans for home renovations

Large personal loans for debt consolidation

What do you need to consider before taking out a large loan?

Do you need to have a good credit rating for a large personal loan?

How to get accepted for a large personal loan

Your income

Credit score

Looking to borrow?

Large loans FAQs

Can you repay a large loan early?

Is there anything you can't use a large loan for?

Can you make overpayments on a large loan?

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