Debt Consolidation Loan FAQs

We know that not everyone gets the best deal from their bank. That’s why we’ve chosen to do things differently.

What is a debt consolidation loan?

A Shawbrook debt consolidation loan is an unsecured personal loan that could be taken out to repay other debts and have one monthly payment. However, the terms may be different, and the overall cost could increase so read the terms carefully before entering into an agreement.

How does a debt consolidation loan work?

A debt consolidation loan works by taking out one single loan to repay other loans so that you only have one fixed monthly repayment. Depending on your situation, this could be a more cost-effective option, however, the terms may be different, and the overall cost could increase so read the terms carefully before entering into an agreement.

What loans and debts can be consolidated?

A range of different debts and loans can be consolidated. The use of a debt consolidation loan can differ from providers so contact your provider to understand more about their debt consolidation loans.

Who can apply for a debt consolidation loan?

We have some basic criteria which you’ll have to satisfy before we can consider your application. You must:

  • Be aged 21 to 75
  • Have been a UK resident for at least three years
  • Have an annual income of at least £15,000
  • Have a personal bank account in the UK

Do you charge any fees to setup a debt consolidation loan?

At Shawbrook, we do not charge any fees for setting up a debt consolidation loan.

Do I have to be a home owner to apply for a debt consolidation loan?

No, at Shawbrook you do not have to be a home owner to apply for a debt consolidation loan, but we have some basic criteria which you’ll have to satisfy before we can consider your application. You must:

  • Be aged 21 to 75
  • Have been a UK resident for at least three years
  • Have an annual income of at least £15,000
  • Have a personal bank account in the UK

How long can I take a debt consolidation loan over?

At Shawbrook, loan terms available are from 1 to 7 years.

What happens after I have a decision?

After we provide a quote you will have the choice whether or not to accept the terms offered. You will have 30 days to decide and once you accept the terms you will be sent your e-signature pack to review and sign your loan documents.

How soon will I get my money?

If your loan application is successful, funds will be transferred into your account within 3 working days after we have received your signed loan documents.

Why have I been declined?

If you get declined for a debt consolidation loan, there could be a number of reasons why you have been declined as each decision is based on your personal circumstances and by reference to a credit reference agency. The most common reasons for a decline decision are:

When will I have to make my first repayment?

The terms of your Shawbrook personal loan are set out in your credit agreement. Refer to this document to find out when you are due to make your first repayment.

Is there an early repayment charge?

Yes, there is an early repayment charge. The early repayment charge will include 28 days' notice and an additional 30 days interest that we are entitled to charge.

Who can I speak to if I have a question about my debt consolidation loan?

For enquiries regarding debt consolidation loans for existing customers, please call 0345 650 6290.