12 month loans: spread your repayments over a full year
Sometimes a shorter repayment period just doesn’t work. If you need to borrow between £50 and £5,000 but want smaller, more manageable monthly payments, a 12 month loan could be the right fit. Also known as 1 year loans, these let you spread repayments over a full 12 months for lower monthly instalments.
New Horizons searches over 50 FCA-authorised lenders to help find your best 12 month loan match, with no impact on your credit score. We’re a credit broker, not a lender, which means we do the searching so you don’t have to. One application, multiple options.
Whether you’re covering an unexpected bill, managing a car repair, or dealing with a household emergency, a 1 year loan gives you breathing room. You get the funds you need upfront and repay in fixed monthly instalments over 12 months.
Our service is completely free. We never charge fees, never sell your data, and never share your details without permission. If matched with a lender, you see your options in minutes and can choose the offer that works for you, or walk away with no obligation.
How 12 month loans work at New Horizons
Applying for a 1 year loan through New Horizons is straightforward. The whole process is designed to be quick, transparent, and pressure-free.
- Complete our short online form with your personal and financial details
- We run a Soft Credit Match across our panel of over 50 FCA-authorised lenders
- If matched, you see your loan options in minutes, with no impact on your credit score
- Choose the offer that works for you, or walk away with no obligation
- If you accept an offer, the lender completes a full affordability check
- If approved by the lender, funds can be in your account within 15 minutes*
The initial eligibility check uses a soft search that’s invisible to other lenders. Only you can see it on your credit report. A full credit check only happens if you choose to accept a loan offer and proceed with a specific lender.
The application takes around three minutes, and our service is available 24 hours a day, 7 days a week. There’s no paperwork, no phone calls, and no hidden steps.
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What is a 1 year loan?
A 1 year loan is a type of personal loan where you borrow a fixed amount of money and repay it in equal monthly instalments over 12 months. Each payment covers a portion of the amount you borrowed plus interest.
With New Horizons, you could borrow between £50 and £5,000 with a 12 month repayment term. Other terms are also available through our lender panel, ranging from 3 to 36 months, so you can pick the option that best suits your budget.
The main advantage of a 1 year loan compared to shorter terms is affordability. By spreading the cost over 12 monthly payments, each individual instalment is smaller. This can make it easier to manage your budget alongside your regular bills and expenses.
However, it’s worth knowing that a longer term typically means you pay more in interest overall than you would with a shorter repayment period. If you can comfortably afford higher monthly payments, a short term loan over 3 or 6 months could save you money in the long run.
12 month loans for bad credit
A less-than-perfect credit history doesn’t automatically rule you out. Many of the lenders on our panel specialise in working with people who have experienced credit difficulties, whether that’s missed payments, defaults, CCJs, or simply a thin credit file.
We work with lenders who look at your current circumstances, not just your past. Factors like your income, employment status, and ability to afford repayments can all play a role in a lender’s decision.
If you’ve been turned down for a loan for bad credit elsewhere, our Soft Credit Match technology can help. Because we search over 50 lenders at once, you have a better chance of being matched with one whose criteria fit your situation. And because the initial search is a soft check, applying for a 1 year loan won’t affect your credit score or leave a mark on your file.
If you’re working on rebuilding your credit, our guide on how to fix a bad credit score fast has practical tips you can start using today.
Eligibility requirements for a 1 year loan
To check your eligibility for a 12 month loan through New Horizons, you’ll need to meet these basic requirements:
- Be at least 18 years old
- Be a UK resident
- Have a regular source of income
- Have a UK bank account
- Provide accurate personal information
Meeting these criteria doesn’t guarantee approval. The final lending decision is always made by the individual lender, based on their own affordability and creditworthiness checks. But our soft search eligibility check gives you a clear picture of your options before you commit to anything.
Different lenders have different criteria. Some focus heavily on credit scores, while others place more weight on current income and affordability. By searching across 50+ lenders in one go, you increase your chances of finding one that suits your profile.
Understanding the costs of a 12 month loan
Knowing exactly what you’ll pay is important before borrowing. At New Horizons, we believe in full transparency about loan costs.
Our representative APR is 49.9%. The actual rate you’re offered will depend on your individual circumstances, including your credit history and the lender you’re matched with. Rates across our panel range from 9.3% APR to a maximum of 1721% APR.
Here’s a representative example of what a 1 year loan could cost:
Representative example: Amount of credit: £1,200 for 18 months at £95.44 per month. Total amount repayable: £1,717.83. Interest: £517.83. Interest rate: 49% pa (fixed). Representative 49.9% APR.
To put this in context, some competitors charge significantly more. CashLady’s representative APR is 79.5%, while Fair Finance charges 280% APR. New Horizons’ representative rate of 49.9% APR is considerably lower than many alternatives in the short-term lending market.
New Horizons never charges any fees to customers. Our service is completely free to use. We’re paid by lenders through commission, so there’s never any cost to you, whether you’re matched with a lender or not.
What can a 1 year loan be used for?
A 12 month loan from our lender panel can be used for almost any personal purpose. Common reasons people search for a 1 year loan include:
- Unexpected car repairs or MOT costs
- Replacing a broken boiler or household appliance
- Covering veterinary bills
- Managing an emergency travel expense
- Consolidating smaller debts into one manageable payment
- Bridging a temporary gap between paydays
Whatever the reason, make sure borrowing is the right choice for your situation. A loan is a financial commitment, and you should be confident you can afford the repayments alongside your regular bills and living costs. If you need funds urgently, our emergency loans page explains how quickly you could access money.
Why choose New Horizons for your 12 month loan
The short-term lending industry has a troubled history. Fee-charging brokers, data selling, and aggressive contact have left many borrowers understandably cautious. New Horizons was built in 2017 specifically to do things differently.
We never sell your data. We never spam you. We never share your details without permission. That’s our Customer Promise, and it’s not just marketing. It’s how we operate every day.
Here’s what sets us apart when searching for a 1 year loan:
- Over 50 FCA-authorised lenders searched with one application
- Soft Credit Match technology that won’t affect your credit score
- No fees, ever. Our service is completely free to use
- Representative 49.9% APR, lower than many competitors
- If approved, funds can be in your account within 15 minutes*
- Feefo Gold Trusted Service rating from verified customer reviews
- Available 24/7, including weekends and bank holidays
We process over 7,510 loan applications every day, connecting people across the UK with lenders who can help. Whether you have excellent credit or a more complicated history, our technology searches for the best match from our entire panel.
If you’re comparing options, our borrow money page gives a broader overview of everything available through New Horizons.
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Choosing the right repayment term is just as important as choosing the right loan amount. Here’s how a 12 month term compares to other options available through our lender panel.
Shorter terms (3 to 6 months): Higher monthly payments but less interest paid overall. Best if you can comfortably afford larger instalments and want to clear the debt quickly. Our quick loans page covers shorter-term options in more detail.
12 months: A middle ground that balances affordable monthly payments with a reasonable total interest cost. Popular for amounts between £500 and £2,000.
Longer terms (18 to 36 months): The lowest monthly payments, but you’ll pay more interest over the full term. May be more suitable for larger amounts like £3,000 loans or £5,000 loans where spreading the cost further makes budgeting easier.
The best term depends on your personal budget. Before applying, work out how much you can realistically afford to repay each month after covering your essential bills and expenses. Only borrow what you need, and choose the shortest term you can comfortably manage.
Alternatives to a 12 month loan
Borrowing isn’t always the best solution. Before applying for a 1 year loan, it’s worth considering whether any of these alternatives might work for your situation.
Credit unions offer affordable loans to their members, often at lower interest rates than commercial lenders. You usually need to be a member before you can borrow, but many are open to people in specific areas or occupations.
Family or friends may be able to lend you the money interest-free. If you go down this route, agree on clear repayment terms to protect the relationship.
Payment plans with creditors can help if you’re behind on bills. Many companies will agree to a repayment schedule if you contact them and explain your situation.
Free debt advice is available if you’re struggling financially. Speak to MoneyHelper, StepChange, Citizens Advice, or National Debtline before taking on new borrowing. These services are free, confidential, and designed to help you find the best way forward.
Responsible borrowing: what to think about first
Taking out any loan is a serious financial decision. Before you apply for a 12 month loan, ask yourself these questions:
- Is this expense genuinely urgent, or could it wait while you save?
- Can you afford the monthly repayments alongside your regular bills?
- Have you explored all other options first?
- Do you understand the total cost of the loan, including interest?
- What would happen if your circumstances changed during the repayment period?
If you’re unsure whether borrowing is right for you, seek free advice before applying. MoneyHelper offers impartial guidance that can help you make an informed decision.
If you do decide to borrow, only take out what you need. A smaller loan means lower repayments and less interest. For smaller amounts, our £500 loan or £1,000 loan pages have more specific information.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Frequently asked questions about 12 month loans
Can I get a 1 year loan with bad credit?
Yes, you may still be eligible for a 12 month loan even with a poor credit history. Many lenders on our panel specialise in working with people who have defaults, CCJs, missed payments, or a thin credit file. Our Soft Credit Match searches over 50 lenders to help find those willing to consider your current circumstances, not just your past.
Will applying for a 12 month loan affect my credit score?
No. Our initial eligibility check uses a soft search that won’t affect your credit score. Only you can see it on your credit report, and other lenders can’t detect it. A hard credit check only takes place if you choose to accept a loan offer and proceed with a specific lender.
How quickly can I receive the money from a 1 year loan?
If approved by a lender, funds can be in your account within 15 minutes.* The exact timing depends on your bank’s processing policies. Our application takes around three minutes to complete, and our system returns results in minutes if you’re matched.
How much can I borrow with a 12 month loan?
Through New Horizons, you could borrow between £50 and £5,000. The amount you’re offered depends on the lender’s assessment of your affordability and creditworthiness. Only borrow what you need and can comfortably repay.
What is the interest rate on a 1 year loan?
Our representative APR is 49.9%. The rate you’re offered will depend on your individual circumstances. Rates across our lender panel range from 9.3% APR to a maximum of 1721% APR. The lender will confirm your exact rate before you agree to any loan.
Are there any fees for using New Horizons?
No. New Horizons never charges any fees to customers. Our service is completely free to use. We’re a credit broker paid by lenders through commission, so there’s no cost to you regardless of the outcome.
Can I repay a 12 month loan early?
Early repayment policies vary between lenders. Many lenders allow you to pay off your loan before the end of the 12 month term, which could save you money on interest. Check the specific terms of your loan agreement or contact your lender directly to find out about any early repayment charges.
What happens if I miss a payment on my 1 year loan?
Missing a payment can have serious consequences. Your lender may charge a late payment fee, and the missed payment will be recorded on your credit file, which could affect your ability to borrow in future. If you’re struggling to make a repayment, contact your lender as soon as possible. They may be able to offer a solution.
Is New Horizons a lender?
No. New Horizons is a credit broker, not a lender. We search over 50 FCA-authorised lenders and brokers to help find the best match for your circumstances. We don’t make lending decisions. New Horizons Finance Ltd (Company No. 11757330, FCA reference: 834535) is an Appointed Representative of Flux Funding Limited (FRN 806333).
What’s the difference between a 12 month loan and a payday loan?
A traditional payday loan is designed to be repaid on your next payday, usually within a few weeks. A 1 year loan spreads repayments over 12 fixed monthly instalments, making each payment more manageable. Through New Horizons, you can choose terms from 3 to 36 months to suit your budget. Our same day loans page has more information on quick-access borrowing options.
Do I need a guarantor for a 12 month loan?
No. The lenders on our panel do not require a guarantor. Your application is assessed on your own merits, including your income, affordability, and credit history. If you’re specifically looking for this type of borrowing, our no guarantor loans page has more details.
Can I apply for a 1 year loan if I’m on benefits?
You may be eligible if you have a regular income, including certain benefits. Lenders assess affordability based on your total income and outgoings. Some lenders on our panel do consider benefit income when making lending decisions. Visit our loans for people on benefits page for more specific guidance.
How do I choose between a 12 month loan and a longer term?
It depends on your monthly budget. A 1 year loan means higher monthly payments but less total interest. A longer term (18 to 36 months) reduces your monthly outgoings but costs more overall. Work out what you can comfortably afford each month after covering your essential expenses, and choose the shortest term that fits.
What documents do I need to apply?
You don’t need to provide any paperwork upfront to check your eligibility with New Horizons. Our online form asks for basic personal and financial details. If a lender makes you an offer and you choose to proceed, they may request proof of income, identification, or bank statements as part of their full assessment.
Can I apply for a 12 month loan outside of business hours?
Yes. Our service is available 24 hours a day, 7 days a week. You can check your eligibility and see your options at any time, including evenings, weekends, and bank holidays.
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