Nationwide Nails Competitive Costs of Loan Repayment Rates
The Nationwide Building Society announced this week that it has cut the average interest rate on its unsecured personal loans to 7.6 per cent APR, making it provisionally the lowest rate in the UK.
The new low rate applies to personal loans between £7,500 and £14,999 to run over a five-year period, but it is only on offer to customers with one of Nationwide’s FlexAccounts. The low rate applies whether the personal loan is processed via a local branch, over the phone or via the Internet.
Although the building society stressed that a FlexAccount is easy to apply for, it also made available today another deal on unsecured personal loans for borrowers who do not have a current account with the lender.
This loan has an average APR of 7.7 per cent but has to be applied for via moneysupermarket.com. Similar to the other loans, it also runs for five years and is for sums between £7,000 and £14,999.
Nationwide divisional director for banking Graham Pilkington said: “We are delighted to offer the lowest standard personal loan rate in the UK to our current account customers while, through moneysupermarket.com, we are also offering one of the best rates in the market to other people. At a time of year when we’re likely to see an increase in personal loan applications, these low rates will be attractive to people looking to fund the acquisition of a new car or bring forward major purchases before VAT rises to 20 per cent in January 2010.”
Mr Pilkington went on to point out that unsecured personal loans were a great way to buy a new car as it acted as a form of debt consolidation, reducing monthly outgoings into a single manageable debt with fixed instalments.
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