Divorce Bridging Loans | Money Saving Advisors
See how bridging loans can finance divorce settlements or property buyouts during divorce proceedings.
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Divorce is tough - getting financial support shouldn't be
No two divorces - or finances - are the same. Some people need a short-term boost to cover legal costs, while others need to buy out a partner's share of the home or start over elsewhere. Taking the time to compare loans can help you choose the right fit and the best terms - easing both the emotional and financial upheaval.
Types of divorce loan to consider
Before comparing specific loan products, it helps to understand the main categories suited to divorce needs:
- Secured loans - Homeowner loans using your property as collateral, typically with lower interest and higher borrowing limits. Ideal for a home buy-out or refinancing shared debt.
- Unsecured personal loans - Handy for legal fees or short-term costs. Tend to offer smaller amounts with higher interest. Dependent on your income and credit score, not property.
- Guarantor loans - If your credit score has taken a hit, a guarantor (such as a close relative) can help you secure a loan. Approval is more likely, but missed repayments could impact both parties.
- Legal finance loans - Specialist lenders may provide funding specifically for divorce and court costs, often to be repaid from the final settlement.
- Credit cards/overdrafts - Best reserved for smaller, immediate expenses like admin costs or moving fees. Interest rates can be high if balances aren't cleared quickly.
Each loan type has pros and cons, and comparing them side by side can give you confidence in the choice you make.
Real-world loan options from UK lenders
You can compare divorce loans with us by hitting the button below. In the meantime, here's a snapshot of the market in general:
- Barclays secured loan - A lower-rate loan secured against your home, useful for larger sums like buy-outs or debt consolidation.
- HSBC Personal Loan - Borrow from £1,000 to £30,000 with fixed monthly repayments over 1-8 years. Representative APR in 2025 is 6.4%, with no arrangement fee and free overpayments.
- NatWest personal loan - Borrow up to £50,000 (for existing customers) or £35,000 (for new customers). Representative APR in 2025 starts at around 6.6% with terms up to 10 years.
- Barclaycard support for separated parents - While not a loan product, Barclaycard offers practical support and guidance for single parents navigating their post-divorce finances.
- HSBC Premier personal Loan - Tailored for Premier account holders, this option may come with favourable rates and higher borrowing limits, depending on eligibility.
Summing up
Divorce is never easy, but choosing the right financial help doesn't have to add to the stress. By comparing divorce loans, you can start to get a solid footing as you move into the next chapter of your life.
Frequently Asked Questions
Can I get a loan during my divorce proceedings?
Yes, many lenders offer loans during divorce - whether for moving costs, independent legal advice, or financial settlements. Getting approved depends on your finances and credit history. Some lenders may ask for details of your ongoing divorce to assess the risk.
Are secured loans better than unsecured loans for divorce?
It depends. Secured loans usually offer lower interest rates and higher borrowing limits but put your property at risk if you miss repayments. Unsecured loans don't use your home as security, but they often have higher rates and tough approval criteria.
What are hard and soft loans?
If you borrow casually from a family member, this is considered a "soft" loan rather than a contractually binding obligation. In family law, soft loans are often treated differently from formal debts and may be seen as gifts. Hard loans have clear terms and are legally binding.
What if I have a poor credit rating after my separation?
Even with a lower credit score, you could still qualify for a divorce loan - especially with secured or guarantor loan options - but you'll likely pay higher interest. It's a good idea to speak to a broker for guidance.
Can I repay the loan early if financial proceedings are over?
Yes, most lenders allow early repayment, though some may charge early repayment fees. Always check the terms of your loan agreement before signing. If you expect to receive funds from your divorce settlement soon, choose a loan that's flexible with repayments and doesn't impose heavy penalties.
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