When to get professional borrowing advice

The moments that matter for borrowing decisions

Borrowing is rarely just a rate or a repayment. It is a decision threaded through your pay packet, your postcode, and your future plans. In 2025, those threads are tightening. UK mortgage activity has rebounded, with net borrowing rising in May and approvals for purchases and remortgaging lifting noticeably. Outstanding mortgage lending has edged to new highs, supported by stronger gross advances. That signals renewed confidence, but also a bigger need to get term lengths, product types, and affordability right before you commit.

At the same time, household bill debts have climbed. Energy and council tax pressures mean more people are juggling multiple commitments, and Citizens Advice is handling large daily volumes of debt issues across England and Wales. Complexity is growing, with many clients managing more than one debt. Add in the fact that overdrafts still carry very high APRs compared with personal loans, and the difference between a quick fix and a costly mistake can be stark.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms.

A further layer is financial capability. Research from the University of Bristol shows that literacy and confidence do shape borrowing choices, yet proven interventions to improve behaviour are mixed. Income, timing, and local context matter too, particularly for young adults whose access to credit and homeownership is shaped by where they live and when they try to buy. This is not simply about products. It is about personal circumstances.

The near-term backdrop may be more supportive. Forecasts indicate lending should grow through 2026 as rates gradually ease and uncertainty fades. Even so, averages conceal wide ranges. In May 2025, £5,000 personal loans carried materially higher APRs than £10,000 loans, and overdrafts were far costlier than either. Choosing the right product, structuring payments, and avoiding snowballing costs is where timely, professional advice can make a measurable difference.

As a UK-based retail finance broker, Kandoo focuses on clarity: which product, at what cost, on terms you can sustain. The right moment to get advice is usually earlier than you think, ideally before a search footprint, application, or balance transfer shapes your options. If you are weighing a mortgage, restructuring expensive debt, or funding a purchase, speaking to an expert first can help you model the trade-offs and keep a clear path to your goals.

Bottom line: when conditions shift and choices multiply, expert guidance helps you borrow with confidence and avoid avoidable costs.

Who benefits most from timely guidance

If you are a first-time buyer navigating higher deposits and changing approval criteria, professional advice can help map affordability against lender policy. If you already own but your fixed rate ends within six to nine months, advice can help you weigh remortgaging versus product transfers in light of current approvals and fees. If you are managing multiple household bills or consolidating debts, an expert can stress-test repayments so today’s relief does not become tomorrow’s regret. Young adults, gig workers, and those with variable income will also benefit from tailored assessments that reflect how lenders actually underwrite. For small business owners, separating personal and business borrowing and understanding security, pricing, and covenant risks often needs specialist input.

Jargon made simple

• APR and Representative APR: The headline yearly cost of borrowing, including interest and standard fees. Representative APR is what at least 51% of accepted applicants receive - your rate may differ.

• Fixed versus variable rate: Fixed keeps repayments steady for a set period. Variable tracks a benchmark or lender’s rate, meaning costs can rise or fall.

• Loan-to-value (LTV): Your mortgage size as a percentage of the property value. Lower LTV can mean sharper pricing and broader choice.

• Debt-to-income (DTI): Your monthly debt commitments versus income. Lower DTI can improve approval odds and affordability outcomes.

• Hard versus soft search: Hard searches leave a footprint on your credit file. Multiple hard searches in a short window can weaken applications.

• Overdrafts and revolving credit: Flexible but often expensive. Overdraft APRs tend to be far higher than personal loans.

• Remortgaging: Switching your mortgage to a new deal or lender, often to secure better pricing or raise funds.

Your main routes to borrow responsibly

1. Mortgage or remortgage For purchases, movers, or to switch an expiring fix. With approvals rising again, advice helps match LTV, fees, and incentives to your budget and timeframe.

2. Personal loan Fixed-term borrowing for a known amount. Rates often improve at higher tiers, but total cost and early repayment rules matter.

3. Credit card with a balance transfer offer Useful for structured debt reduction if you can clear within the 0% window and manage fees.

4. Overdraft Short-term buffer. Given typical APRs, it is rarely a long-term solution for persistent borrowing.

5. Debt consolidation loan Combines multiple debts into one repayment. Works best with discipline and a clear plan to avoid rebalancing onto cards.

6. Secured homeowner loan Uses property as security when a remortgage is not suitable. Consider carefully, as your home is at risk if you do not keep up repayments.

7. Small business finance Term loans, asset finance, or revolving facilities. Helpful for working capital or investment, but requires cash flow planning and covenants.

What it could cost and why it matters

Who is likely to be eligible

Lenders assess income stability, credit history, and existing commitments. For mortgages, your LTV, property type, and documented income drive pricing and maximum borrowing. Applicants with clean credit files and lower DTIs usually see more options. If you have recently changed jobs, are self-employed, or have variable earnings, you will often need additional evidence such as tax calculations and business accounts. Personal loans and credit cards are mainly underwritten on credit score and affordability checks, with better rates typically offered to stronger profiles. Where there are recent arrears or multiple debts, options may still exist but on tighter terms. Young adults and first-time buyers can improve eligibility by building a clear savings trail, reducing unsecured balances, and avoiding multiple hard searches in quick succession.

From first question to funded - your path

1. Clarify the goal, amount, and timeframe.

2. Check your credit files with the main agencies.

3. Map income, bills, and current debt-to-income.

4. Compare products using soft-search where possible.

5. Stress-test repayments against rate rises.

6. Prepare documents and submit a clean application.

7. Finalise offer, sign, and set up repayments.

What to weigh up at a glance

Red flags and timing cues before you apply

If your fixed mortgage rate ends within nine months, start exploring options now. Lender pipelines are busy and approvals have risen, so securing a rate early can protect you if pricing moves. If household bills are mounting or you hold multiple debts, seek advice before consolidating so you do not lock in costs for longer than necessary. Overdraft reliance is another warning sign given typical APRs. Young adults and those with uneven income should consider how timing, location, and career stage affect approvals, particularly where deposits and local prices differ sharply. Finally, avoid stacking hard searches. A short conversation with an adviser and a soft-search comparison can preserve your credit profile and widen your choices.

Sensible alternatives if borrowing is not right today

1. Build a targeted emergency fund Even a modest buffer reduces reliance on overdrafts and credit cards.

2. Negotiate with current creditors Ask about payment plans, temporary relief, or reduced interest arrangements.

3. Trim non-essential outgoings Small recurring cuts can free monthly cash for priorities.

4. Use 0% purchase cards strategically Only if you can clear within the promotional window without new spending.

5. Delay large purchases Waiting a few months can improve affordability and eligibility.

Quick answers to common questions

Q: When should I seek advice on a remortgage? A: Around six to nine months before your deal ends. You can often secure a rate now and switch later if a better one appears.

Q: Are overdrafts ever a good long-term option? A: Typically not. Average overdraft APRs are far higher than personal loans. They are best used as a short-term buffer only.

Q: Does a balance transfer always save money? A: It can, if the fee is reasonable and you plan to clear the balance before the 0% period ends. Otherwise, reversion rates can erase savings.

Q: How do rising approvals affect me as a buyer? A: More approvals suggest improving lender appetite, but criteria still apply. Strong documentation and realistic LTV targets remain essential.

Q: What if I have multiple debts and missed payments? A: Speak to an adviser early. Options may include restructuring, consolidation with safeguards, or tailored repayment plans through creditors.

Q: Do young adults face different hurdles? A: Often. Income volatility, deposits, and local prices matter. Advice can help align timing, budget, and product selection with realistic goals.

What to do next

List your goals, review your credit files, and gather payslips, statements, and any existing loan details. Book a conversation with a qualified UK adviser who can soft-search options, stress-test repayments, and recommend a path that moves you toward lower costs and better resilience. Set a review date to stay on track.

Small print you should read

This guide provides general information only and is not personal advice. Borrowing is subject to status, affordability, and lender criteria. Rates, fees, and terms change. Consider independent advice and read all documentation before committing.