23 September 2009
According to a recent report the leading building society Nationwide is offering a highly competitive loan rate to consumers to compete with personal loan rates being offered by some major supermarkets, but the low rate is only being made available to existing customers of the building society. The rate being offered by Nationwide on loans for between £5500 and £15000 taken over five years is 7.7 percent.
However, despite this winning headline rate that is being advertised by Nationwide for existing customers those that are interested in these loans will not actually know what rate they will get until they have submitted their application, as the actual rate that they will get will be based on their individual circumstances.
Customers that wish to apply must also have held a FlexAccount for at least three months with at least £750 a month being paid into the account.
It is thought that this new offering from Nationwide has come out at a time when many people may be considering taking out a personal loan to purchase a car, with the new registrations now due out, and the rate beats many of the ones being offered by leading supermarkets and other lenders.
An official from the Nationwide said that its pricing methods were the same as those used by other major lenders, stating: ‘We mainly look at their credit history to see if there are any defaults or penalties.’
There has been concern over recent months that whilst the Bank of England base interest rate has fallen to record levels of just 0.5 percent many lenders have been hiking up rates on loans and mortgages thus making increased profit from consumers.
Over the past two years there is said to have been an increase of 44 percent in rates on loans of £5000 taken over three years.