Likely Loans Cuts Representative APR for New Customers This Spring

Likely Loans, one of the UK’s mid-market unsecured lenders targeting borrowers with fair credit histories, has reduced its representative APR for new applicants as of spring 2026. The move makes it a more competitive option for borrowers who sit in the credit band between prime lenders and high-cost short term credit — a segment that has historically had limited good options.

What Has Changed and Why It Matters

Likely Loans has positioned itself in the so-called “near-prime” segment of the UK personal loan market — borrowers whose credit history contains a blemish or two but who are not in serious financial difficulty. This is a credit band that many high-street banks and prime lenders do not serve, pushing these borrowers towards more expensive short term credit products.

The rate reduction brings their representative APR to a more competitive level within the near-prime segment, aligning with the modest downward drift in personal loan rates seen across the market since the Bank of England began its rate-cutting cycle in mid-2024.

Who Likely Loans Is Suitable For

Likely Loans is designed for borrowers who:

• Have a fair or recovering credit history — not necessarily clean, but not in active default
• Need £500–£5,000 over 12–36 months
• Want structured monthly repayments rather than a lump sum due on payday
• Have been declined by mainstream banks but are looking for better rates than typical short term lenders

They are not a short term lender — the minimum term is typically 12 months, which means total interest is higher in absolute terms than a 30-day loan. The advantage is that monthly payments are smaller and more manageable for the average household budget.

How It Compares to the Wider Market

In the near-prime instalment loan segment, the main benchmarks are products like 118118 Money (59.9% representative APR) and Cashfloat (67.9% REP APR). A lender reducing their rate below these levels in this credit band represents genuine competitive movement.

For context, the FCA’s 0.8%/day cap on HCSTC applies to loans under 12 months with an APR of 100% or more. Longer-term instalment lenders like Likely Loans are not subject to the same daily cap, which gives them more pricing flexibility at the lower end of the APR range — but also means the total interest on a longer loan can still be substantial.

Use our lender comparison table to see current representative APRs side by side and filter by the credit profile and loan amount that matches your situation.

Should You Apply?

Before applying to any lender, use a soft-search eligibility checker to see the rate you are actually likely to be offered. Remember: representative APR is the rate offered to at least 51% of successful applicants — the remaining 49% may receive a higher personal APR.

If you are comparing Likely Loans with short term options, always compare total repayable amounts rather than APR figures, which are not meaningfully comparable across different loan terms. Read our APR guide for a fuller explanation of why.