Online finance-provider Moneyback Bank has struck back against Cahoot’s bid for title of best rate homeowner loan provider, cutting its rate from 5.7 to 5.5 per cent APR.
Cahoot had held the top spot in the compare loans tables for a scant week before being deposed.
Halifax and Bank of Scotland are both tagging not far behind with homeowner loan rates slashed from 6.4 to 5.8 per cent, the lowest available from any high street bank.
“A price war for loans has suddenly broken out which is great news for consumers looking for a low homeowner loan rate,” said personal finance expert Stuart Glendinning.
“The market is now awash with rates below six per cent APR. Speculation of a base rate reduction in the first quarter of this year may have spurred some of this competition.”
Personal finance advisors have warned that while the headline rates may be generous, providers may be less than giving when they decide who is eligible for them, however.
“Consumers need to be mindful that only those with an excellent credit profile will benefit from this competition which is the minority of adults in the UK,” Mr Glendinning added.
“Other customers with a poorer profile will find it more difficult to achieve the most competitive deals based on their circumstances.”
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