Best Holiday Loans UK 2026
Finance a dream holiday without high-rate credit cards
UK personal loans for holidays allow you to spread the cost of flights, hotels, and package holidays over fixed monthly repayments. A fixed-rate loan at 9-12% is significantly cheaper than a credit card at 23%+ for the same trip, paid off over the same period.
Avg APR
9% – 22%
Loan Amount
£1,000 – £10,000
Term
12 – 36 months
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Top UK Lenders for Holiday Loans
Zopa
Competitive fintech rateRepresentative APR
9.9% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Fair
Funding
1–2 days
M&S Bank
M&S rewards on travelRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Good
Funding
1–2 days
TSB
Online application, fastRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Good
Funding
1–2 days
Sainsbury's Bank
Flexible repayment termsRepresentative APR
6.9% APR representative
Loan Range
£1,000 – £40,000
Min Credit
Good
Funding
1–3 days
Lendable
Fair credit, fast decisionRepresentative APR
24.5% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Fair
Funding
1–2 days
Representative APR shown. 51% of successful applicants receive this rate or better. Your rate may differ based on your credit profile.
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Pros
- Spread the cost of a dream holiday
- Fixed monthly repayment — no rate surprise
- Better than credit card for amounts over £2,000
- Book early with cash — often cheaper fares
Cons
- Holiday cost increases with interest
- Committing to repayment after you return
- Consider ATOL/ABTA protection regardless of payment method
Key Facts
Frequently Asked Questions
Is a personal loan better than a 0% credit card for a holiday?
For amounts you can repay within 20 months, a 0% card is better. For longer repayment or larger amounts, a personal loan at 9-12% wins.
Does ATOL protection apply if I pay with a personal loan?
Yes — ATOL protection is tied to what you buy, not how you pay. A package holiday booked with an ATOL-protected operator is covered regardless.
Can I get a holiday loan with fair credit?
Yes — Zopa and Lendable both cater to fair credit borrowers. Expect representative APRs of 10-25% depending on your credit profile.
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