Moneyback Bank lowers personal loan rates

Following Moneyback Bank's decrease to its unsecured personal loan rates by 0.6% APR this week, Simeon Linstead, Head of Personal Finance at uSwitch.com, comments: "Amidst the current financial uncertainty, Moneyback bank has provided a glimmer of hope for consumers by lowering its rates for loans between £7,500 - £15,000 from 8.4% to 7.8%.

This move, however, represents a complete u-turn by Moneyback in a very short space of time, having only just increased its loan rates from 7.6% to 8.4% at the end of August. This yo-yo strategy means that although the rate has not quite fallen to the level it was only a matter of weeks ago, it is likely that Moneyback will be featuring on loan best-buy tables once again with this competitive rate.

"Within the context of the wider loan market, which has seen customers paying up to £1.2 billion more in interest than they did this time last year, any evidence of increased competition amongst lenders will be a welcome news for consumers who have struggled to secure affordable credit.

"Moneyback's three-week rate rebound is symptomatic of just how unpredictable and volatile the credit market is in the current climate. Customers should be prepared to act fast to secure the most competitive deals as it is becoming increasingly difficult to predict just how long best buy deals will be around for."