Anyone looking to take out a new credit card or personal loan should do so before 1 February to avoid new regulations which mean fewer borrowers will receive the advertised rate, according to UK comparison site, moneysupermarket.com.
With the Consumer Credit Directive looking to shake up the lending market, new research from uSwitch.com, the independent price comparison and switching service, reveals that initially it could cause more harm than good, leaving consumers confused and potentially put off applying for credit.
High street banks Nationwide and Santander have started a price war on loan rates, with the winners set to be consumers, says uSwitch.com, the independent price comparison and switching service.
With effect from today, Tuesday 11 January 2011, Nationwide is cutting its personal loan rate for its main current account customers to 7.2% APR typical. This new rate, for loans of up to five years between £7,500 and £14,999, means that Nationwide is once again offering the UK's lowest personal loan rate.
Santander this week launched the lowest loan rate on the market, as well as bringing back their £100 current account switching incentive.
A rate war has broken out in the personal loan market, which is great news for anyone looking to borrow this January. The average rate on the top 10 unsecured personal loans at £7,500 has fallen to 7.89 per cent - the lowest level since November 2008.
Andrew Hagger from Moneynet.co.uk looks at the latest moves in the personal loan market. In the last two weeks we have seen six big financial brands cut the interest rate on their personal loan products.
M&S Money is reducing the rate on its personal loans from 9.9% APR to 7.5% APR (typical). The offer is available from 6th January 2011 and applies to personal loans between £7,500 and £15,000.
Sainsbury's Loans has just introduced a reduced rate of 7.4% APR Typical for new customers applying online for loans between £7,500 and £14,999.
One third of people who take out personal loans do not shop around, instead taking out the first loan they receive a quote for, according to research by Sainsbury's Finance. Additionally, 54 per cent of people chose their own bank or current account provider when choosing a lender and of these, 39% did not look elsewhere for a competitive quote.
The average rates on the top 10 unsecured personal loans has started to fall again, after rising to record highs in the first half of 2010, according to analysis from moneysupermarket.com.
Parents eagerly awaiting a new baby will need an average of £2,980 to fund purchases such as decorating and furnishing the nursery, a buggy, car seat, baby clothes and toys according to new research from Sainsbury's Finance Personal Loans.
There has been a 16.74% increase in the average interest rate on personal loans of £5,000 in the last two years alone, according to research by Sainsbury's Finance.
Nationwide Building Society is has cut its personal loan rate to 7.5% APR typical, making it the UK's lowest personal loan rate.
Sainsbury's Finance has announced a reduced rate of 7.7%, available from 9th September until 7th October, for Sainsbury's shoppers applying for a personal loan between £7,500 and £14,999.
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