Loans at Home
If you or someone you know prefers face‑to‑face contact or struggles to use online or high‑street borrowing, doorstep loans (also known as loans at home) might seem like an option. At Dot Dot Loans we understand how daunting borrowing can feel, especially if you’ve had trouble arranging credit in the past. We’re here to help explain what doorstep loans are, their risks, and how our service helps you explore safer alternatives with FCA‑authorised lenders.
Typically, loans at home involve smaller amounts and are repaid in weekly or monthly instalments, collected directly from your home.
At Dot Dot Loans we offer an alternative to Doorstep loans, our 2 minute quote form is easy to fill out and can provide you with an instant decision from an FCA authorised lender on our panel.
What Are Loans at Home?
Doorstep loans are personal loans delivered and collected direct to your home by a lender’s representative. You receive a cash loan at your door and repay it in regular instalments, often by handing cash to the representative. These loans offer home-visit access, so there’s no online application or branch visit required.
They are usually offered by specialist high-cost credit firms. Because you’re paying for the convenience of in-person service, these loans tend to come with much higher interest and fees than typical personal loans from banks or credit unions.
FCA Rules and Regulation
Doorstep loans used to be quite common in the UK before stricter regulation came into force. The Financial Conduct Authority (FCA) has taken steps to protect consumers by implementing affordability checks, interest rate caps, and rules on how lenders can interact with borrowers at home.
- Since January 2015, the FCA requires affordability checks
- There’s a daily interest cap of 0.8%, a maximum £15 default fee, and a total cost cap of 100%
- All lenders must be FCA-authorised, and representatives visiting your home must carry ID and explain your rights
These regulations aim to reduce problems like aggressive collection tactics, unaffordable loans, and unclear cost structures.
When Might People Use Them?
Doorstep loans may come up in the following situations:
- You don’t have reliable internet access or aren’t confident using online services
- You find it easier to deal with someone face-to-face
- You’ve been declined by high street banks or credit unions
- You may already have existing high-cost credit
While doorstep loans can offer convenience and personal contact, they are usually more expensive and riskier than other borrowing types.
Risks and Considerations
It’s important to know the potential drawbacks:
- High cost: Even with the FCA caps, interest and fees can be much higher than standard personal loans
- Repayment pressure: Regular in-person collections might feel uncomfortable
- Refinancing risks: Some borrowers roll over loans or take new ones to cover existing debt
- Limited flexibility: You’re usually locked into fixed repayment schedules
- Historic concerns: Doorstep lenders have faced criticism for poor practices
How Dot Dot Loans Can Help
At Dot Dot Loans, we don’t lend. Instead, we help you compare FCA-authorised payday loan and short-term loan options—all online—from regulated lenders. Using our service is free, and we only perform soft searches that won’t affect your credit score.
We:
- Explain your borrowing options clearly
- Guide you through pros and cons of different loan types
- Only work with FCA-authorised lenders
- Ensure transparency and clarity at every step
Step-by-Step: What to Do
- Work out how much you need to borrow and why
- Consider alternatives like credit unions or budgeting loans
- If thinking about a doorstep loan:
- Check FCA authorisation
- Understand the total cost and repayment terms
- Use Dot Dot Loans to explore safer online alternatives
- Apply online with accurate income details
- Undergo affordability checks with the lender
- Repay on time and seek help early if you struggle
Alternatives to Consider
Compared with doorstep loans, these may be less expensive:
- Low-cost personal loans from banks or credit unions
- Credit union loans: often more affordable and community-based
- Payday loans via Dot Dot Loans: online, fast, and FCA-regulated
- Budgeting loans: available if you receive certain benefits
- Borrowing from family or friends (if possible)
Example Story
Mary’s story: Mary needs £400 for emergency car repairs. She doesn’t use the internet and worries about being declined by a bank. A doorstep lender offers £400 cash. After 20 weeks of paying £25 a week, she’s repaid around £500. It’s convenient, but expensive.
Using Dot Dot Loans could have helped Mary explore cheaper, online alternatives with transparent terms and better repayment flexibility.
A Simple Analogy
Think of doorstep loans like hiring a taxi when there’s a bus available. It might be quicker or more direct, but you pay more for the convenience. Other options may take more effort, but they’re often better for your budget.
Frequently Asked Questions
Yes, if the lender is FCA-authorised. But they’re still expensive and should be considered a last resort.
Some lenders may perform a credit check, but they often focus on affordability rather than just credit scores.
Yes, many lenders offer online applications, but a representative will still visit your home to finalise the process.
Yes, all lenders offering doorstep loans must be authorised by the Financial Conduct Authority (FCA), ensuring fair and transparent practices.