What are top-up loans?
A top-up loan is only available if you’re borrowing from a lender at the moment. Usually, you won’t end up having two loans on the go at once. Instead, your current loan will be paid off and replaced with a brand-new one for a bigger amount. This means you’ll still only have to make one repayment a month.
How do top-up loans work?
Let’s imagine that you currently have a balance of £2,000 left on your loan.
You have decided you want to top up your loan and borrow another £1,500.
If your lender accepts your application, they’ll open a new loan for £3,500. Some of this money will be used to pay off your old balance of £2,000 in full. You’ll then have £1,500 left over to spend.
Here are a few things to remember:
- You might be charged for paying back the first loan early
- The interest rate for your new loan might be higher than the old one
- You might end up making repayments for longer
How do I apply for a top up?
Log in to the account you have with your lender to see if you’re allowed to top up your loan. Some companies let you see how much more you can borrow. You’ll need to fill out more forms and there will be a credit check. However, there shouldn’t be too much paperwork as the lender will already have most of your details.
Bear this in mind when you’re making an application:
- If you have a guarantor, they will need to agree to the top-up loan
- You can have a different guarantor with an Amigo Loans top up, but you’ll need the same one with a Bamboo Loans top up
- You might only be able to top up your loan after making several repayments on time and in full
- With NatWest loans and HSBC loans, you have the option to take out an additional loan instead of topping up the first one
Where can you get top-up loans?
It is possible to top up payday loans and personal loans with most major lenders and banks.
When you’re shopping around for your first loan, you can normally compare interest rates to find the best deal. This is harder to do with a top-up loan, as you’ll have to take or leave the rate your lender gives you. When you’re first getting a loan, it’s worth comparing rates on Choose Wisely and seeing who offers top ups.
The amount you’ll be able to top up your loan with depends on your income, monthly spending and the lender. Nationwide loans have a maximum limit of £25,000, but you could be allowed to top up Barclays loans to a total of £50,000.
Here’s how to find loan companies on Choose Wisely:
- Select how much you want to borrow, and how long for, using the options on this page.
- Click Get Accepted to start your application with our 100% secure service.
- Complete our quick and easy form.
- Check out the list of loans that match your requirements, ordered by who is likeliest to accept your application and who is cheapest.
- Select your chosen lender and finalise your application.
Top up loan FAQs
Yes, many personal loans such as guarantor loans offer top up facilities. If you have a particular lender in mind that you want you to use, or already have a loan with it’s worth contacting them directly to enquire about the availability of a top up.
Yes, making multiple applications for any type of loan can affect your credit score. However, if a lender has your details, knows and trusts your ability to make repayments based on your account management thus far it’s likely they will lend you to again providing the new loan is still affordable. They will run a new credit check which will appear on your credit file but if you get the top up funded and keep up repayments this shouldn’t cause too many issues.
This will be at your lender’s discretion as each will have their own maximum loan amounts set slightly differently. If you need to check the maximum your lender will offer you can see this on their library page by finding the loans library in our navigation. Alternatively, you can contact your lender directly to enquire.