A smaller monthly payment does not necessarily mean a cheaper loan. Compare the amount received, repayment schedule, total repayable and fees alongside the APR.
A simple worked example
Suppose two fictional offers each provide £5,000, with no separate fees. Offer A asks for 24 payments of £235: £5,640 in total. Offer B asks for 36 payments of £170: £6,120 in total.
Offer B costs £65 less each month but £480 more overall and lasts a year longer. Offer A costs £640 above the amount borrowed; Offer B costs £1,120. These figures illustrate arithmetic only. They are not available offers, representative examples from a lender or a recommendation.
Build one comparison row per offer
Copy the actual figures from each written offer into your own notes. Use the same amount and term where possible. If a final payment differs, add it separately. Do not count a fee twice if it is already included in the repayment schedule.
- Amount you will receive
- Number and amount of repayments, including any different final payment
- Total repayable and any separately payable fees
- Personal APR and whether the rate can change
- Conditions and cost of repaying early
Cost and affordability are different questions
The lowest total cost is not automatically affordable for your budget. Consider essential spending and existing commitments before making a decision. If you are already struggling with debts, MoneyHelper can help you find free debt advice.
This page explains how to read figures. It does not compare live lenders, check eligibility or choose a product for you.
Sources and scope
Prepared by Umofi. Sources checked on 17 September 2026. General information, not a personal recommendation. Check the current source and the firm’s written terms before acting.