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Personal Finance News – Loan Pricing War In Full Swing

by Jim ONeil on January 10, 2011

in uk loans news

Anyone who needs to take out a personal loan in 2011 will be happy to know that the largest providers are engaged in a price war. Moneynet research indicates that six large financial firms reduced rates for unsecured personal loans within the past two weeks. These reductions are for the largest loans that they offer, making for quite a savings.

M&S Money has the distinction of undergoing the biggest reduction, reducing its £7,5000 to £15,000 loan APR to 7.5 percent from 9.9 percent. This reduction results in borrowers saving £522 on a £7,500 five-year loan and £695 on a £10,000 five-year loan. Barclays reduced its Barclayloan Plus APR for existing customers from 10.9 percent.

First Direct is now offering its existing customers a 7.5 percent interest rate on loans between £7,000 and £15,000, down from 8.9 percent. For loans of this size, Tesco Bank lowered its interest rate from 7.9 percent to 7.6 percent, or 7.5 percent for existing loan customers. Sainsbury’s Personal Finance is currently leading the market, with a rate reduction from 7.7 to 7.4 percent for Nectar cardholders.

Small loans, up to £3,000, have much higher rates, reaching nearly 20 percent. This is because lenders consider these loans to be a higher risk. Black Horse is currently offering the most inexpensive

conventional personal loan for £2,000, with an interest rate of 17.9 percent. Small loan borrowers may be better off obtaining a no-interest credit card and repaying the money within the interest-free timeframe.

As the large loan interest rate war rages on, borrowers are the ones who are emerging victorious. People who are in the market for one of these larger loans should act quickly before the great rates disappear. Locking in a low rate of interest can save a borrower quite a bit of money on a large, long-term loan.

ves diard

They probably want us all to buy things on credit but that will screw them because we all despise them even more now, and those people with any sense will not need something that urgently.

The thing is they are screaming for help from the wrong sort >Government Bailouts are wrong and not a long term solution they help big business and small business but not I, a self-employed person and the very last thing I will do is sign on and take their measly patronising benefits this just gives some oik too much paid paper work and wastes a life.

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