Halifax Loans

Find out more about the personal loans offered by Halifax, including how they work and how much you could potentially borrow.

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KRISTINA FOX

WRITER

Halifax is now a high street bank but it was originally set up in 1852 as the Halifax Permanent Benefit Building Society. It became a public limited company (plc) in 1997 and is now part of Bank of Scotland plc.

Halifax’s products and services are available to personal customers only. This includes (but is not limited to) personal current accounts and savings accounts, loans, credit cards, investments, insurance and mortgages. Halifax does not offer business banking services.

You can use an unsecured personal loan from Halifax for a range of purposes, from family holidays to weddings or home improvement projects. You will need to tell the bank what you want to use the money for before you apply, and you can’t use it for certain prohibited reasons.

Halifax personal loans

Halifax offers personal loans to both new and existing customers. They are all unsecured loans, which means you do not have to offer up security, such as your home or your car, in order to borrow.

New customers can currently borrow between £1,000 and £25,000. For existing customers, the upper limit is increased to £50,000. Loan terms vary between one and seven years, and the interest rate you are offered will depend on how much you want to borrow and your personal circumstances.

Halifax personal loans are repaid in monthly instalments by direct debit, with a fixed rate of interest added. You will not be penalised for making extra payments on top of these, though you may be charged up to 58 days’ interest if you repay the whole sum early.

» COMPARE: Personal loan rates

Halifax loan rates

The interest rates on Halifax personal loans are fixed over the loan term, which means they won’t go up or down while you repay what you’ve borrowed. The interest rate on your loan is decided using criteria such as how much you are borrowing, how long your repayment term is, and your credit score.

Before you apply to borrow, you’ll be able to see the representative annual percentage rate (APR) that applies to the loan. This includes fees and charges that you may have to pay when borrowing, and tells you how much it might cost to borrow from a particular lender.

The representative APR is based on how much 51% of customers might expect to pay to borrow from a specific provider. It can be useful when comparing loan terms and rates to see which one best suits your circumstances, but should be used only as a guide, not a guarantee. You could be offered a higher rate or different terms once you apply for a loan.

If you are an existing customer, you can find out whether you are likely to be accepted for a loan before you apply, without affecting your credit score. New customers will need to formally apply for a personalised quote, which may not be the same as the representative APR that is advertised by Halifax.

Can I get a secured loan from Halifax?

No, you cannot get a secured loan from Halifax. All Halifax loans are unsecured, so you do not have to secure what you borrow against assets, such as your home or your car.

Other lenders may provide secured loans, so if that matches your needs it is worth comparing a range of lenders to see what is on offer.

» COMPARE: Secured loans

Pros and cons of Halifax loans

Loans from Halifax can come with advantages and disadvantages, depending on your current circumstances.

Pros

  • Both new and existing customers can apply for a loan from Halifax.
  • You currently may be able to borrow up to £50,000 as an existing customer, or £25,000 as a new customer.
  • You can apply online in minutes.

Cons

  • New customers cannot check their eligibility before applying.
  • Loans are not available to people with a history of bankruptcy or county court judgments (CCJs) – this is the case with a number of lenders, not just Halifax.
  • Unsecured loans are not available.

How do Halifax loans work?

If you are accepted for an unsecured personal loan from Halifax, you will receive the loan amount directly into your bank account.

You will then pay this amount back, plus interest and any fees the lender may charge, over the course of several months or years. Repayment is by monthly direct debit.

The interest rate is fixed over the term of the loan. The interest rate and loan term is agreed when you take out the loan, and the loan term can range from one to seven years, depending on your personal circumstances.

Halifax loans are unsecured, which means you do not have to put up an asset, such as your home, as security in case you fail to make a payment.

Other lenders may offer secured loans, where you must put something up as collateral for the loan.

» MORE: Secured vs unsecured loans: What’s the difference?

Can I make overpayments on a Halifax loan?

Yes, it is possible to make overpayments on a personal Halifax loan. You can make extra payments during the loan term, although you may be charged up to 58 days’ interest if you pay off the total amount early.

Can I borrow more on a Halifax loan?

If you already have a loan with Halifax, you may be eligible for additional borrowing. You can apply online and Halifax should tell you immediately if you’ve been accepted.

You can either take out a second, separate loan with Halifax, or replace your current loan with a new amount and a new term.

If you want to apply to replace your loan online, you must meet certain criteria. For example, you must have a Halifax current account, and the loan must be held in your name only (i.e. it cannot be a joint loan). You can find out more on the Halifax website.

What can I use a Halifax loan for?

You can use a Halifax personal loan in a variety of ways, whether you want to finance a new car, borrow money to redecorate your kitchen, or splash out on the wedding of your dreams.

Car

Perhaps your current car doesn’t cut it, and you want to upgrade to a newer model. Or maybe you’re a classic car enthusiast with your eye on a bargain. Either way, you could get a personal loan to help pay for your new wheels, which you’ll then own outright.

Using a personal loan to pay for a car is different from other ways of buying a car, such as a hire purchase or a personal contract purchase. There are pros and cons to each type of car finance, so it’s worth comparing to see which way would best suit your needs.

» MORE: Types of car finance

Debt consolidation

If you have debts with multiple lenders, it can feel difficult to keep track of them all. You can get a debt consolidation loan that puts them all in one place. This means you will only have one interest rate on all your debt, and one monthly payment that goes towards your total outstanding balance.

You may be offered a higher interest rate or a longer term if you apply for a debt consolidation loan, which could increase how much you pay overall. What you get depends on your individual circumstances.

If you’re worried about debt, you can contact national debt charities such as StepChange and National Debtline for help and support.

Home improvements

You’re planning the kitchen of your dreams. Granite countertops, a new oven, a fresh lick of paint… The costs could add up.

It’s possible to get a personal loan to finance home improvement projects, such as fitting a new kitchen, converting a bedroom into a home office or building an extension.

If you’re thinking about a home improvement loan, you should create a budget for your project. You can plan out how much contractors and supplies could cost and get an idea of how much you need to borrow to complete your project.

Once you know how big a loan you want, you can check the eligibility criteria for home improvements and apply on the Halifax website. If you already bank with Halifax, you’ll also be able to check whether you’re likely to be accepted before applying.

Other ways to pay for home improvements include remortgaging, additional borrowing (such as a further advance) and credit cards. It’s worth weighing up different options to find one that’s right for you.

» COMPARE: Credit cards

Wedding

The venue, catering, hair, make-up, dresses, suits, music, cake… There can be lots to pay for when you plan a wedding. You may be able to fund your big day with a personal loan (sometimes called a wedding loan.

It’s important to know how much you want to borrow, and you should be confident that you can pay it all back. Creating a wedding budget can help you get everything in order before the main event.

Holiday

Perhaps you’re celebrating a big wedding anniversary, going on your honeymoon, or taking the trip of a lifetime around the world. Whatever your holiday plans, you may be able to take out a personal loan to finance them.

You should make a budget for your holiday so that you know what you’re planning to spend, and you only take out a loan for the amount you need.

Restricted uses

There are a number of activities that Halifax will not lend you money for, including:

  • gambling
  • investments
  • property purchases (whether for you or for someone else, such as a family member)
  • holiday clubs or timeshares

Am I eligible for a Halifax loan?

Halifax has certain eligibility criteria for loan applicants. You are eligible to apply for a Halifax personal loan if you:

  • are 18 or older
  • live in the UK (except the Channel Islands and the Isle of Man)
  • are employed or can prove a regular income
  • are not in full-time education
  • have not had a credit request rejected in the past month
  • don’t have a bad credit history

Decisions are made based on your specific personal circumstances.

Do I need a Halifax bank account to get a Halifax loan?

You don’t need to be an existing Halifax customer to apply for a Halifax loan. However, if you have a Halifax current account, you may be able to apply for a larger loan.

If you are a Halifax customer, you can currently apply for a loan of up to £50,000, while if you’re not an existing customer you’re limited to borrowing a maximum of £25,000.

Halifax customers may also receive funds quicker than those who don’t have a personal current account with the bank.

What credit score do I need for a Halifax loan?

There is no specific credit score that you must have to get a Halifax loan. Loan applications are assessed on a number of criteria, including your credit history and your income sources.

That said, a good credit score can make it more likely that lenders will accept you for a loan. It can also increase your likelihood of being offered larger credit limits and lower interest rates.

Can I get a Halifax loan with bad credit?

If you have a bad credit history, you may find it more difficult to get a personal loan.

The eligibility criteria from Halifax state that applicants must not have been denied credit in the past month. Halifax will also not consider you for a loan if you have a history of bankruptcy or have County Court Judgments (CCJs) on your credit report.

However, there are ways to improve your credit score. For example, you may be able to get a CCJ removed from your credit file. Making recurring payments on time and ensuring there are no mistakes on your credit report can also help.

» COMPARE: Loans for bad credit

Can I get a joint loan from Halifax?

It is possible to apply for a joint loan from Halifax. You can apply with a partner, family member or friend, so long as you both meet the eligibility criteria. You will both be responsible for paying off the whole loan if the other person fails to make their repayments.

Taking out a joint loan with someone else will link your credit histories, so it makes sense to discuss your finances to make sure you both can afford the loan and are on the same page when it comes to making repayments.

To be eligible to apply for a joint loan from Halifax, both applicants must meet the criteria for a personal loan. They must also both have a Halifax current account that’s at least one month old.

You cannot apply for a Halifax joint loan online. To apply for a joint loan, you must call the bank and speak to a member of staff.

How to apply for a loan from Halifax

The loan application process differs slightly depending on whether you are an existing Halifax customer or new to the bank.

If you’re an existing customer, you can currently get a quote for a loan between £1,000 and £50,000 using online banking. Halifax will tell you whether you’re likely to be accepted before you apply, without impacting your credit score.

If you’re new to Halifax, you can currently apply online for a loan between £1,000 and £25,000. You won’t be able to see whether you’re likely to be accepted before you apply. However, there is a loan calculator on the Halifax website which can give a rough estimate of how much you could borrow and at what cost.

It’s also possible for new and existing customers to apply in a Halifax branch. Halifax current account holders can also apply over the phone.

However you apply, you’ll need to provide the following details:

  • why you’re applying for a loan
  • how much you want to borrow
  • your preferred repayment term length
  • information to confirm your ability to repay in future
  • your current income and expenditure

If you’re a new customer, you’ll also need to provide some basic personal information, such as your name, date of birth, contact details and your bank account sort code and account number.

How long does it take to get a Halifax loan?

You may receive a decision on your loan application instantly, although it could take longer if Halifax needs more information from you.

If approved, existing Halifax customers often receive funds in their bank account instantly. Occasionally, it can take up to 72 hours.

Applicants that do not currently bank with Halifax may have to wait longer to receive funds if approved. Usually, borrowers will receive the money within 24 hours, and it should take no longer than five working days.

Halifax customer reviews

On Trustpilot, Halifax is classed as ‘Bad’ with 1.5 out of five stars, based on over 3,200 reviews.

On the Google Play store, the Halifax mobile banking app receives 4.5 stars out of 5, based on more than 197,000 reviews.

On the Apple App Store, the Halifax app is rated 4.8 out of 5, based on 1.3 million reviews.

However, it is worth noting that this includes reviews for all Halifax products and services; the reviews are not limited to personal loans.

All customer reviews information is correct as of 23 September 2022.

Halifax Loan FAQs

Can you borrow money from Halifax?

Yes, you can borrow money from Halifax. You can apply for a personal loan whether you’re an existing Halifax current account holder or a new customer.

Are Halifax loans easy to get?

The likelihood of you being accepted for a loan is based on a number of factors and depends on your personal circumstances. You may be more likely to get accepted for a Halifax loan if you have a good credit score.

About the author

Kristina Fox
Kristina is a writer at NerdWallet. A recent graduate trading French for finance, she has experience creating content for student newspaper Cherwell and an edtech company. Read more

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