Loan market hots up again with the launch of exclusive low rate loan

Average rates on the top five personal loans have fallen again for the second time in two months, according to analysis by MoneySuperMarket. Following the launch of an exclusive loan with The AA with a rate of just 4.6 per cent APR, those looking to borrow £7,500 over five years will now pay £284 less in interest compared to January 2013. The exclusive loan is only available through MoneySuperMarket until Monday 20th January.
 
Analysis by Britain’s number one comparison site has found the average top 5 loan rate for borrowing £7,500 in January 2013 was 6.14 per cent, costing £1,195 in interest over the five years of a loan. In comparison, at an average rate of 4.70 per cent, the interest charged over five years would be £911 meaning anyone who is looking to borrow now will be better off by £284 compared to the same period last year.
 
Kevin Mountford, head of banking at MoneySuperMarket, said: “Over the last year we have seen loan rates continue to plummet to all-time lows and it’s great that we are able to yet again offer another market leading deal exclusively to our customers. The AA loan at 4.6 per cent is great news for anyone who is looking to borrow for a New Year purchase or to help pay off the aftermath of last Christmas. 
 
“Whilst the decision to borrow should never be taken lightly; consumers who are in the market for a loan can take advantage of the cheaper borrowing making this a viable option to those looking to consolidate their current outgoings. As well as the amount you are looking to borrow, the shape of your credit file will directly affect the rate you pay. These low rates are only available to those with excellent credit histories. Those with a less than perfect credit file can expect to be charged a significantly higher rate.”