Date issued: 4 Jan 2010
UK'S NEW LOWEST PERSONAL LOAN RATE OF 7.6% APR TYPICAL1 OFFERED BY NATIONWIDE
With effect from Tuesday 5 January 2010, Nationwide will be introducing a new personal loan rate of 7.6% APR typical for loans of between £7,500 and £14,999 for up to five years for its main FlexAccount1 customers. This is the lowest rate in the UK2 and the same low rate applies whether the loan is taken out through a branch, over the telephone or via the Internet.
Nationwide’s market leading personal loan rate could be a welcome boost for those wishing to consolidate their debts, as debt consolidation typically sees a rise in the post-Christmas period. For example, in January 2009 alone, almost 60% of all loans issued were for debt consolidation purposes3. On top of this, January-March 2009 saw more than 115,000 additional debt queries – an increase of over 25% – than the previous three months4.
If a customer takes out a personal loan to consolidate existing credit card debt, they may be able to reduce their monthly outgoings and save interest. With economic conditions still difficult, debt consolidation could be considered as a potential way to reduce monthly outgoings as well as reducing the overall amount of interest payable5.
Richard Napier, Nationwide’s head of credit cards and personal loans, said: “Our new market leading personal loan rate represents a great start to the New Year for those looking for a cheap personal loan deal.
“For those who may have spent too much over the Christmas period and have several outstanding debts, a personal loan at a highly competitive rate may be the best solution. A personal loan could help reduce monthly outgoings into one manageable debt with fixed monthly repayments, helping people make the most of their hard earned money.
“This also shows the benefits of our FlexAccount, as no lender on the high street, Internet or supermarket can beat our rate.”
Loan Amount |
Loan Rate – APR typical |
£7,500 - £14,999 |
7.6%1 |
Notes to editors:
1 |
Must be a main FlexAccount customer.
A main FlexAccount is defined as: a FlexAccount with a Visa debit card that has had £750 or more deposited per month for the last 3 months (excluding internal transfers from other Nationwide accounts). The rate offered will depend on the amount you wish to borrow and your individual circumstances. All loans are subject to status and available to those aged 18 and over.
Other loan amounts between £1,000 and £25,000 are available with repayment terms between one and seven years.
One fixed rate for the term of the loan – repayments never change.
There are no upfront charges or arrangement fees.
No repayments for the first month.
Customers can apply in branch, by telephone (0800 30 20 10) or online (http://www.nationwide.co.uk/loans/default.htm) for a decision in minutes. |
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2 |
When based on a loan of £7,500 and £10,000. Competitor comparison of main personal loan providers, including the high street banks and supermarkets, below:
Lender |
Advertised headline rate on £7,500 |
Advertised headline rate on £10,000 |
Nationwide |
7.60% |
7.60% |
A&L* |
8.90% |
8.90% |
Abbey* |
8.90% |
8.90% |
Barclays* |
10.90% |
10.90% |
HSBC**** |
8.70% |
8.70% |
Lloyds TSB* |
11.30% |
11.30% |
HBOS* |
12.40% |
12.40% |
RBS* |
12.90% |
11.40% |
NatWest* |
12.90% |
11.40% |
Sainsbury’s** |
7.90% |
7.90% |
Tesco*** |
8.30% |
8.30% |
* must be current account customer with lender
**must be a Nectar card holder
*** for existing Tesco loan customers only
**** must be existing current account customer – rate available online only |
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As at 29/12/09 |
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3 |
Figures from CACI |
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4 |
Citizens Advice |
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5 |
Customers should consider all their borrowing options carefully and seek independent advice if necessary. |
Credit facilities are provided by, and written quotations are available from, Personal Loans Admin, Nationwide Building Society, Kings Park Road, Moulton Park, Northampton, NN3 6NW.
