GeraCash / UK Loan Cost Context
UK Loan Cost Context & Borrowing Index April 2026
How much does UK borrowing cost right now? Total cost of credit context for personal loans, mortgages, credit cards and overdrafts — based on Bank of England published effective rates. Generic context only — your rate depends on your credit profile.
How much does a £10,000 personal loan cost in the UK in April 2026?
Based on the Bank of England effective rate for new personal loans of 9.53% in April 2026, a £10,000 personal loan over 3 years costs £320.47/month, with total interest of £1,536.91 — a Gera Borrowing Cost Index of 127/100 (Bank of England OGL v3.0). This is generic context; your actual rate will depend on your credit profile.
Current Bank Rate: 3.75%
Set 18 December 2025 by the Bank of England Monetary Policy Committee. The Bank Rate is the policy rate — commercial lenders set their rates independently above this floor.
UK effective lending rates by product type (April 2026)
| Loan type | Effective rate (BoE) | Spread above Bank Rate | GBCI | Indicative interest (example) |
|---|---|---|---|---|
| Personal Loan | 9.53% | 5.78% above Bank Rate | 127/100 | £52.37 on £1,000 (1 year) |
| Mortgage | 4.08% | 0.33% above Bank Rate | 54/100 | £16,463.2 on £75,000 (10 years) |
| Credit Card | 21.20% | 17.45% above Bank Rate | 283/100 | £31.37 on £500 (6 months) |
| Arranged Overdraft | 21.79% | 18.04% above Bank Rate | 291/100 | £1.82 on £100 (1 month) |
BoE effective rates are market-wide aggregates for April 2026, not any specific lender's product. GBCI = Gera Borrowing Cost Index (0–100). Source: Bank of England Money and Credit Statistics (OGL v3.0).
Explore loan cost context
Select a loan type, amount and term to see the total cost of credit based on BoE effective rates
Using BoE effective rate for personal loans: 9.53% (BoE effective rate on new personal loans to individuals, April 2026).
Computed using the annuity formula at the BoE aggregate effective rate for personal loans (April 2026). This is rate context only — not a quote from any lender. Actual rate, terms, fees and eligibility depend on your credit profile and the lender's product. Not financial advice.
Detailed cost context by loan type
Personal Loan
Effective rate: 9.53% · GBCI: 127/100
Mortgage
Effective rate: 4.08% · GBCI: 54/100
Credit Card
Effective rate: 21.20% · GBCI: 283/100
Arranged Overdraft
Effective rate: 21.79% · GBCI: 291/100
Frequently asked questions
- What is the current Bank of England Bank Rate?
- The Bank of England Official Bank Rate is 3.75%, set on 18 December 2025. This is the policy rate that influences — but does not directly set — the rates lenders charge consumers. Source: Bank of England Official Bank Rate History (OGL v3.0).
- What is the typical effective rate on new personal loans in the UK?
- The Bank of England's aggregate effective rate on new personal loans to individuals was 9.53% in April 2026. This is the market-wide average across all lenders, not the rate you will be offered. Your rate depends on creditworthiness, loan size, and term. Source: BoE Money and Credit Statistics, April 2026 (OGL v3.0).
- What are current UK mortgage rates?
- In April 2026, the Bank of England effective rate on newly drawn mortgages was 4.08%, and the effective rate on the outstanding mortgage stock was 3.92%. These are aggregate market averages. The current Bank Rate of 3.75% anchors mortgage pricing, but lenders add their own margins. Source: BoE Money and Credit Statistics (OGL v3.0).
- What are typical credit card interest rates in the UK?
- The Bank of England effective rate on interest-charging credit card balances was 21.20% in April 2026. This compares to a Bank Rate of 3.75% — a spread of 17.45% and a Gera Borrowing Cost Index of 283/100. Always clear card balances in full each month to avoid this cost. Source: BoE (OGL v3.0).
- What is the Gera Borrowing Cost Index (GBCI)?
- The Gera Borrowing Cost Index (GBCI) is a Gera-computed signal expressing how wide the spread between the BoE effective lending rate and the Bank Rate is, on a 0–100 scale. GBCI = ((effectiveRate − bankRate) / bankRate) × 50 + 50. A higher GBCI means lending rates are proportionally more expensive relative to the Bank Rate; 50 = the spread equals the Bank Rate itself. See the methodology at /uk-loan-cost-context/methodology.
- How is total cost of credit calculated?
- Total cost of credit is computed using the standard annuity formula for equal monthly repayments: monthly payment = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P = principal, r = monthly rate (annual rate ÷ 12), n = term in months. Total interest = (monthly payment × n) − P. The rate used is the BoE aggregate effective rate for that loan type — not any specific lender's product.
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Data sources
Contains public sector information published by Bank of England and licensed under the Open Government Licence v3.0. Source: Bank of England — Official Bank Rate History (June 2026, published 18 December 2025).
Contains public sector information published by Bank of England and licensed under the Open Government Licence v3.0. Source: Bank of England — Money and Credit Statistics, April 2026 (April 2026, published June 2026).
All rates are Bank of England published aggregate effective rates — not any specific commercial lender's product. Effective rates are for context only; your actual rate will depend on your individual creditworthiness, lender, and product. See the GBCI methodology →
Related tools
- UK take-home pay calculator — see how much you keep after tax
- Mortgage affordability — area-by-area affordability ratio
- GBCI methodology — how the Gera Borrowing Cost Index is calculated