Freedom Finance Loan Alternative

If you’re looking for a loan, you may already have a lender/broker in mind for your personal loan. But remember, there could be other lenders out there that suit your circumstances better. Some of us are on the hunt for the perfect personal loan but we just can’t decide on which lender or broker you should use? Here at Simple Personal Loans, we’re breaking down the comparisons with Freedom Finance.

Who are Freedom Finance?

Freedom Finance is a broker who provides unsecured loans and secured loans. They have a small panel of lenders who are all based on the UK who they send your application on to and then you are either accepted or not.

How much can I borrow with Freedom Finance?

Depending on whether you’re looking for an unsecured or secured personal loan, the amount differs. With an unsecured loan, you can borrow up to £25,000, but with a secured loan, it goes all the way up to £2,000,000. The representative example which they provide on their website is as follows: Representative 15.9% APR (Variable)

Representative example: If you borrow £7,500 over 5 years at a Representative APR of 15.9% and an annual rate of 15.9% (fixed) you would pay £177.82 per month. The total charge for credit will be £3,169.20. Total amount repayable is £10,669.20. The minimum repayment period is 12 months. The %APR rate you will be offered is dependent on your personal circumstances. Freedom Finance is a leading credit broker and not a lender.

Compared to Simple Personal Loans

At Simple Personal Loans, we offer unsecured loans up to £35,000. This is higher than most other lenders and brokers in the industry.

Interpreting our specific amounts into Freedom Finances representative proves that we offer a better rate. If you borrow £7,5000 over 5 years at a Representative APR of 5.9%. You would result in paying £144.64 per month. The total charge for credit will be £1,178.85 meaning the total repayment would be £8,678.85. Our minimum repayment period is the same as Freedom Finance at 12 months.

Although our representative example differs to theirs as we use an example with different amounts. It is as follows:

Representative example: £15,000 borrowed for 24 months. Total amount repayable is £15939.20 in 24 monthly instalments of £664.13. Interest charged is £939.20. Interest rate 5.9% pa (variable), min 3.1% APR, max 1326% APR, min and max term: 12 – 60 months.

What period can I borrow for?

At freedom finance, the borrowing period depends on the size of your loan and whether you’re wanting an unsecured loan or a secured loan. For a secured loan, you can borrow for up to 30 years, whereas typically for an unsecured loan you borrow for up to 6 years.

Similarly to us, our unsecured loans are available for up to 6 years. This is to give you the most stress-free loan experience we can as we understand it can be stressful if you are trying to repay a loan in a short amount of time.

Comparing eligibility

At Freedom Finance, they mention that you have to be 18 and the rest of the criteria is chosen by the lender.

Here at Simple Personal Loans, our eligibility criteria is a lot more specific. This is so we can be as straight-forward as possible.

  • Be aged 18 or over
  • Be employed or have a stable source of income
  • Live in the UK or be a UK resident
  • Have an active bank account
  • Have a valid debit card for this account
  • Hold a valid email address and phone number