Two borrowers can take out loans at identical APRs and end up paying very different amounts. The reason is often fixed versus variable pricing. Here's what the difference means — and why it matters even more for short-term borrowing.
5 min read • Cash Train editorial team
Every loan has an interest rate attached to it. What varies between products is whether that rate is locked in for the term or free to move after you sign.
The interest rate — and therefore your monthly payment — is agreed at signing and cannot change during the term. What you see upfront is exactly what you pay.
The rate can rise or fall during the loan term, usually tied to the Bank of England base rate or the lender's standard variable rate. Your payments may increase mid-loan with little notice.
Variable rates are most common in mortgages and long-term products. Most short-term personal loans — including all Cash Train products — are fixed rate.
Variable-rate products typically track one of three reference points:
UK consumer credit law requires lenders to tell you how a variable rate is calculated and how much notice they must give before changing it. This is detailed in your pre-contract information — the Standard European Consumer Credit Information (SECCI) form.
The case for a fixed rate becomes strongest precisely when the loan is short. Here is why:
Suppose you borrow £500 over 6 months. The table below shows how certainty differs between a fixed product and a hypothetical variable one, assuming rates move.
| Fixed (Flex tier) | Variable (illustrative) | |
|---|---|---|
| Loan amount | £500 | £500 |
| APR at signing | 49.9% (fixed) | 49.9% (starting) |
| Monthly payment | £95.21 | £95.21 initially |
| If base rate rises 1% | No change | Payment increases mid-term |
| Total repayable | £571.26 (certain) | Variable — could be higher |
| Budget certainty | Complete | Partial at best |
Representative example. Borrow £500 over 6 months at 49.9% APR (fixed), 6 monthly payments of £95.21, total repayable £571.26. Subject to status and affordability. The variable column is illustrative only and does not represent any Cash Train product.
Variable rates are not inherently worse — context matters. There are situations where they are the rational choice:
For short-term personal loans of £100–£5,000 over 1–6 months, none of these scenarios typically applies. Fixed rate is almost always the right structure.
All Cash Train loans are fixed rate across every tier. The APR, monthly payment, and total repayable shown in the calculator before you apply are the same figures in your credit agreement — nothing changes after signing.
Our three products carry the following representative APRs:
Representative APRs. All rates are fixed. Subject to status and affordability. Available loan amounts £100–£5,000. Your rate, term, and monthly payment are confirmed before you sign — subject to the lender's credit and affordability assessment.
Cash Train shows you the monthly payment and total repayable before you apply — no variable surprises. Borrow £100–£5,000.
Apply now →