I have recently found out that I have the offer of funding for my English Literature PhD, and am really aware of how lucky I am to be in this position – still can’t quite believe it! However, I have an offer to do my PhD at another university which I really love – my supervisor there would be a brilliant fit for the project, I like the location more – unfortunately I was not successful in my funding application for this one.
I always had in my mind that if I was lucky enough to get funding I would take that up, but if all my funding applications were unsuccessful I had worked out that with a mixture of the government postgraduate loan, savings and part time work, I would be able to support myself doing a self-funded PhD. I just wanted to ask some objective opinions on the most important factors to consider in choosing a PhD place?

Hi. Choose the funded PhD. Getting accepted without a fund is nothing. If you struggle financially, you will not feel the excitement of the project nor the brilliance of the supervisor. Even funded PhD students do not have a great financial status during PhD. So what about self funded? Be realistic and go for the funded one.

Getting accepted without funding is nothing?!? All my supervisors started their phds with no funding and then got it after. The fact op got funding elsewhere shows their project is fundable and will likely be offered the money if they go to the uni they love for a year and make a new application. Don’t spread nonsense please. Do what you feel op.

I have the right to say my opinion. I do not call your opinion nonsense but I respect it.
I do not want OP to have unrealistic expectations. Again, PhD is all about funding.

I would take the funded PhD.
Getting funding mid-PhD is not guaranteed and having a secure income makes a PhD massively easier. Not having to work a second job gives you far more time to focus on your research and personal development. A part time job during a PhD is like playing on hard mode.