Best of the Week
Most Popular
1.BrExit Looks Set to Win EU Referendum, Final Opinion Polls Give LEAVE Lead Over REMAIN - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit to Save Europe from Climate Change Refugee Migration Apocalypse - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.EU Referendum Latest Opinion Polls Show LEAVE Halting REMAINs Surge - Nadeem_Walayat
7.Gold And Silver – Insanity Is World “Norm.” Keep Stacking! - Michael_Noonan
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.Gold And Silver: Security, And BREXIT - Michael_Noonan
10.BrExit Vote - "The Trend is Set" -- And What You Should Pay Attention to Next - EWI
Free Silver
Last 7 days
Michael 'Little Finger' Gove Slays Boris 'Baratheon' Johnson in Game of Thrones for Next Tory PM - 30th June 16
Gold, Silver, Bonds and Stocks Path Towards Inflation - 30th June 16
Stock Market SPX Rally Nearing its End as DB Gets Slammed - 30th June 16
Brexit & The Precipice - 30th June 16
Gold and Silver Precious Metals Bull Market Update - 30th June 16
14 Signs the World Is on the Verge of Generational Chaos - 30th June 16
BrExit Stock Market Upwards Crash as FTSE Recovers 100% of Friday Plunge - 30th June 16
Stock Market Rally Runs Out of Steam - 29th June 16
Rapid Growth:The Financial Trends Of Online Gaming - 29th June 16
FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - 29th June 16
Stock Market Bounce May be Over - 28th June 16
Stock Market Meltdown Likely to Drive Gold Towards $1,500 - 28th June 16
Brexit Victory over the EU Globalists - 28th June 16
Brexit Psyop: Greenspan Falsely Blames the Brits for the Crash and Chaos to Follow - 28th June 16
Greenspan Calls Brexit a ‘Terrible Outcome’ as Euro Area Tested - 27th June 16
Stock Market SPX Below Mid-Cycle Support - 27th June 16
Best Holidays for Summer 2016 - 27th June 16
Another Stocks Bear Market? - 27th June 16
BBC EU Referendum Result Highlights - YouGov, Markets, Bookmakers, Pollsters ALL WRONG! - 26th June 16
Investors Map Post-Brexit Strategies Amid Global Market Upheaval - 26th June 16
Gold Price Weekly COT Update - 26th June 16
First the UK, then Scotland ... then Texas? - 26th June 16
Stocks Bear Market Resumes or Just More Noise - 26th June 16
Gold And Silver: Security, And BREXIT - 25th June 16
Dow, Euro & Brexit Recap - 25th June 16
Resistance Holding Gold Stocks after Brexit - 25th June 16
Venezuela vs. Ecuador (Chavismo vs. Chavismo Dollarized) - 25th June 16
Gold, Silver And PM Stocks Summer Doldrums Risk - 24th June 16
Here’s Why China “Economic Hard-Landing” Worries Are Overblown - 24th June 16
Jubilee Jolt: Markets Crash, Gold Skyrockets as Britain Takes Brexit - 24th June 16
BrExit Morning - New Dawn for Britain, Independence Day! - 24th June 16
LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - 24th June 16
Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - 24th June 16
EU Referendum Shock Results Putting BrExit LEAVE in the Lead Hitting Sterling Hard - 24th June 16
Final Opinion Poll Gives REMAIN 52% Lead, Bookmakers, Markets and Pollsters ALL Back REMAIN Win - 23rd June 16
Does BREXIT Matter? Outlook for Sterling - 23rd June 16
Keep Calm and Vote BrExit - Last Chance to Break Free of EU Superstate - 23rd June 16
Here’s the Foreign Policy Trump and Clinton Really Want - 23rd June 16
Details Behind Semiconductor Stocks Leadership - 23rd June 16
Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - 23rd June 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Market Volaility

UK Personal Loan Rates Tumble to Significant Lows

Personal_Finance / Debt & Loans Jan 26, 2016 - 12:08 PM GMT

By: MoneyFacts

Personal_Finance

Personal loans have seen considerable rate cuts since the start of the year resulting in some of the lowest rates ever seen, Moneyfacts.co.uk records show.

Providers have been competing against each other for a place in the best buys, with Yorkshire and Clydesdale Bank most noticeably slashing rates by as much as 2.0%. Lenders are even cutting rates within days of each other in order to beat their rivals to the top spot.


Since the start of January, the following 13 providers have already cut their loan rates: AA, Cahoot, Clydesdale Bank, HSBC, M&S Bank, Nationwide, NatWest, RBS, Sainsbury’s Bank, Santander, Tesco Bank, TSB and Yorkshire Bank.

A small handful of cuts were for loans of £5,000, but the vast majority focused on the advertised tier of £7,500 to £15,000 - pushing average rates for mid-tier borrowing to significant lows. Currently, HSBC and M&S Bank offer a rate of 3.3% for loans of £7,500 over five years, the lowest rate ever recorded.

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“There is now a full-on war between providers who are slashing their loan rates to attract new borrowers. Starting a new year is the perfect time for consumers to re-visit their finances and see whether using a competitive loan to consolidate more pricy debts can be a money saver.

“Using a personal loan to get on top of debts can be a cost-effective option, but it remains to be the case that the best rates are for customers who need £5,000 or more. Advertised rates (APRs) on loans start from £7,500 which may be much more than some people need, plus only 51% of successful applicants may get the advertised rates, so customers should never assume that they are guaranteed the best deals.

“Borrowing slightly less than this could result in being charged unnecessary interest. For example, borrowing £3,000 over three years on a rate of 7.4% would leave borrowers more than £250 out of pocket, compared with a 40-month 0% balance transfer card with a 2.95% fee. As long as customers make sure to pay off the credit card before interest applies, it’s clear to see how there could be hundreds of pounds to be saved.

“However, borrowing larger amounts through a personal loan could still be cost-effective. Similar to a January sale, these low rates may not stay around forever, so anyone considering a loan would be wise to check their credit report and see if they can get a good deal before rates rise.”

*Moneyfacts average loan data spans back to June 2006. APRs = Annual Percentage Rates.

The best loan for borrowing £3,000 over three years is from Sainsbury’s Bank at 7.4% APR, total interest £342.60. Comparing this with the best balance transfer card, which is Halifax’s 40-month interest-free deal with a 2.95% fee (£88.50), the difference in cost would be £254.10.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife