Nationwide cuts personal loan rate
Nationwide has cut its personal loan rate to 7.5% APR making it the lowest rate currently available on the market - but only for its customers.
The rate is for loans up to five years between £7,500 and £14,999 for existing Nationwide FlexAccount customers.
It is also has a personal loan rate of 7.6% exclusively from moneysupermarket.com. This rate is for loans of up to five years between £7,000 and £14,999.
Graham Pilkington, Nationwide's divisional director for banking, said: 'Nationwide continues to be competitive in the personal loan market with the introduction of this market leading headline rate of 7.5% APR typical, beating what's offered by supermarkets and high street banks.'
'We are rewarding our current account customers with the lowest personal loan rate in the UK, which further underlines the benefits of having a Nationwide FlexAccount.'
Tara Evans, from This is Money says: The rate of 7.5% for existing customers is the lowest rate currently available on the market.
However, if you're not an existing Nationwide FlexAccount customer then you can the slightly higher rate of 7.6% - but only through Moneysupermarket.
Other deals at the top end of the market include Alliance & Leicester's personal loan for new and existing customers, which comes with a typical variable rate of 7.6% APR for loans between £7,500 and £14,950.
Nectar Card holders can take care of Sainsbury's Finance's 7.7% typical variable APR, which is also available on loans from £7,500 to £14,999.
Unfortunately, not everyone who applies for these market-leading loans will be offered a rate.
Some people will not have a good enough credit score or high enough income and will be rejected outright.
Meanwhile, others may be offered a higher rate than the headline 7.6%. This is because the lender is happy to offer them a loan but doesn't think they qualify for the best rate.
Lenders have to give at least 66% of applicants the top rate if they want to call it their typical APR, so up to a third of borrowers may be offered more expensive deals.
Competition is now returning to the loans market with providers now offering some really tempting low rates.
However, how much longer will comparison sites remain relevant? More and more lenders are offering exclusive rates to existing customers. If this continues we may be forced to compare lenders across their strengths, rather than individual products.
Source: http://www.thisismoney.co.uk/
