Sainsbury’s Bank cuts its loan rates

Michelle Slade, Analyst at Moneyfacts.co.uk, comments: “The announcement from Sainsbury’s Bank to reduce its loan rates to 6.50% bucks the current trend of rising rates we have been witnessing. With higher base rate and bad debts provisions to contend with, most lenders have increased their personal loan rates over the last few months, with sub-six percent loans a thing of the past.

“While this reduction and underlying rate may seem great news, it must not be taken at face value.

“Whilst a rate of 6.50% is competitive, it is still far from a best buy rate, with MasterLoan still topping the charts with an impressive 6.10%.

“Also be careful if you opt for the lender’s payment protection insurance. When compared with similar products on the market, the Sainsbury’s deal doesn’t fare very well.”