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Your student loan plan depends on when and where you studied. Plan 1: studied in England or Wales before 1 September 2012, or in Scotland/Northern Ireland. Plan 2: studied in England or Wales from 1 September 2012 onwards (most graduates). Plan 4: studied in Scotland from 1 August 1998 onwards. Plan 5: started an undergraduate course in England from August 2023 onwards. Check via your payslip, P60, or your Student Loans Company account at gov.uk/repaying-your-student-loan.

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You start repaying your student loan in April after you graduate or leave your course, but only once your income exceeds your plan’s repayment threshold. For Plan 2: repayments start when you earn above £28,470/year (2026/27). Repayments are 9% of everything earned above the threshold — deducted automatically through PAYE if employed, or via Self Assessment if self-employed. If you earn below the threshold, you pay nothing.

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The maximum student loan depends on your course, household income, and whether you live at home. For 2026/27, the maximum Tuition Fee Loan is £9,535/year (England). The maximum Maintenance Loan ranges from £8,877/year (living at home) to £13,348/year (living away from home in London) for new students. Maintenance Loan amount depends on household income — higher family income means less loan.

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Student loans are written off (cancelled) after a set period regardless of how much is left: Plan 1: 25 years after repayment was first due (or age 65 if earlier). Plan 2: 30 years after the April following graduation. Plan 4: 30 years after repayment was first due (or age 65). Plan 5: 40 years after the April following graduation. Any remaining balance is written off and you owe nothing.

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Student Finance payments are made in three instalments — one per term. The first payment arrives at the start of the academic year (typically late September/early October). The second arrives in January and the third in April. Payments go directly to your university (tuition fee loan) and to your bank account (maintenance loan). You must re-apply each year via your Student Finance account.

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Masters students in England can apply for a Postgraduate Master’s Loan of up to £13,348 (2025/26). This is a single loan — not split into tuition fee and maintenance components like undergraduate loans. It is means-tested differently: household income does not affect how much you get. However, the total amount is lower than undergraduate loans, which is why many masters students feel it is insufficient.

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A bridging loan is a short-term secured loan designed to “bridge” a gap between buying one property and selling another. It allows you to complete a purchase before your existing property has sold. Bridging loans are also used for property renovation, auction purchases, and business cash flow. Terms are typically 1–18 months. Interest rates are higher than mortgages — typically 0.5–1.5% per month.

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A swing loan is another name for a bridging loan — particularly used in the US property market. In the UK, the same product is called a bridging loan. Both terms refer to a short-term loan that bridges the gap between buying a new property and selling an existing one.

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You borrow against the equity in your existing property (or the property being purchased) as security. The loan is repaid in full when your existing property sells or when you refinance to a mortgage. Interest can be “rolled up” (added to the loan balance and paid at the end) rather than paid monthly. Bridging loans are arranged through specialist lenders and brokers, not typically direct from high street banks.

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On a £200,000 bridging loan at 0.75%/month for 6 months: interest = £200,000 × 0.75% × 6 = £9,000 interest. Plus arrangement fee (typically 1–2%) = £2,000–£4,000. Plus valuation and legal fees. Total cost for a 6-month bridge at £200,000 is typically £12,000–£18,000. Always get a full cost illustration from the lender before proceeding.

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A secured loan is a loan backed by an asset — typically your home — as collateral. If you fail to repay, the lender can seize and sell the asset to recover the debt. Secured loans include mortgages, second charge mortgages, and bridging loans. Because the lender has security, rates are lower than unsecured loans and you can typically borrow more. Your home is at risk if you default.

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An unsecured loan is not backed by any asset. The lender relies on your creditworthiness alone. Personal loans, credit cards, and student loans are unsecured. If you default, the lender cannot automatically seize property — but they can take court action, damage your credit file, and use debt collectors. Rates are higher than secured loans because the lender takes more risk.

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A debt consolidation loan combines multiple debts (credit cards, personal loans, overdrafts) into a single loan with one monthly payment, typically at a lower interest rate. Done correctly, it simplifies repayments and reduces total interest. The risk: if you consolidate into a secured loan and miss payments, your home is at risk. Also, extending the term can mean paying more total interest even at a lower rate.

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A director’s loan is money taken from your limited company that is not salary, dividend, or expense repayment. It creates a loan between you and your company recorded in a Director’s Loan Account (DLA). You can also lend money to your company — this is also a director’s loan. Director’s loans have specific HMRC tax implications and must be tracked carefully in your accounts.

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Yes — but your options are limited and rates are higher. Options include: credit unions (non-profit, more flexible criteria), guarantor loans (someone with good credit co-signs), secured loans (backed by property — higher risk to you), and specialist bad credit lenders (very high APRs — use only if necessary). Avoid payday loans and logbook loans — these are extremely expensive and dangerous for those in financial difficulty.

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LTV (Loan to Value) = (Loan amount ÷ Property value) × 100. Example: £180,000 mortgage on a £200,000 property = 90% LTV. Lower LTV = lower mortgage rates. A 75% LTV mortgage will always be cheaper than a 90% LTV mortgage. LTV decreases as you repay capital or as your property value rises.

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Loan to deposit ratio is a banking metric measuring a bank's loans as a percentage of its deposits. For consumers, it is more commonly expressed as Loan to Value (LTV) for mortgages. A high loan-to-deposit ratio for banks means they have lent out more than they hold in deposits — which can indicate liquidity risk.

Check your payslip or P60 — it shows which plan deduction is being made. Plan 1: studied before September 2012 (England/Wales) or in Scotland/Northern Ireland. Plan 2: studied in England/Wales from September 2012 to July 2023. Plan 5: started in England from August 2023. Check at gov.uk/repaying-your-student-loan.

Repayments begin the April after you graduate or leave your course, but only when your income exceeds the threshold. Plan 2: £28,470/year (2026/27). Plan 1: £24,990/year. Plan 5: £25,000/year. You repay 9% of everything above the threshold via PAYE or Self Assessment.

Plan 1: 25 years after repayment first due (or age 65). Plan 2: 30 years after April following graduation. Plan 4: 30 years after repayment first due. Plan 5: 40 years after April following graduation. Any remaining balance is cancelled.

Maximum Tuition Fee Loan: £9,535/year (England, 2026/27). Maximum Maintenance Loan: £8,877 (living at home) to £13,348 (London) per year. Maintenance Loan depends on household income. Apply via Student Finance England.

A short-term secured loan that bridges the gap between buying one property and selling another. Also used for property renovation and auction purchases. Terms are 1–18 months. Interest rates are 0.5–1.5%/month — much higher than mortgages. Repaid when the existing property sells or you refinance.

A swing loan is another name for a bridging loan — a term more common in the US. In the UK it is called a bridging loan. It bridges the financial gap between buying a new property and selling an existing one.

A loan backed by an asset (usually your home) as collateral. If you default, the lender can seize and sell the asset. Rates are lower than unsecured loans. Includes mortgages, second charge mortgages and bridging loans.

A loan not backed by any asset. The lender relies on your creditworthiness. Personal loans, credit cards and student loans are unsecured. Higher rates than secured loans because the lender has no asset to claim if you default.

Money taken from your limited company that is not salary, dividend or expense repayment. Recorded in a Director’s Loan Account. If you owe the company money and do not repay within 9 months of the company year end, HMRC charges S455 tax at 33.75% of the outstanding balance.

LTV = (Loan amount ÷ Property value) × 100. Example: £180,000 mortgage on a £200,000 property = 90% LTV. Lower LTV = lower mortgage rates. 75% LTV gets the best mainstream rates.

Yes, but options are limited and rates higher. Consider credit unions, guarantor loans, or secured loans. Avoid payday loans and logbook loans. Building your credit score first will give access to much better rates.