If you are considering taking out a personal loan, it may be worth bearing in mind that Derbyshire Building Society is currently offering a market-leading interest rate of just 5%.
The rate applies to mid-range personal loans, and is the lowest rate seen in at least the past ten years. If you are struggling to cover the cost of essential outgoings, compare personal loans with Money Expert.
The offer means that someone taking out a £10,000 loan over five years will have to repay £11,322.74 at a rate of £188.71 a month. The ësaleí will last just a week, and is available from now until 25 February.
Paul Wootton, Nationwide’s head of personal loans, said: ìThere are times in people’s lives when they need a personal loan in order to spread the cost of a purchase.
ìThere has never been a better time to consider a Derbyshire personal loan, with the society now offering a market-leading rate of 5 per cent APR representative.î
The new offer improves on Derbyshireís current market-leading rate of 5.1% (APR representative) on loans between £7,500 and £14,999 and between one and five years.
However, under EU rules the building society is obliged to offer the 5% rate to just 51% of successful applicants, so getting this market-leading rate is not guaranteed.
With the Governmentís Funding for Lending Scheme (FLS) allowing banks to access cash at interest rates of just 0.25%, rates on customer financial products such as personal loans could drop below 5% in the near future.
The best rates available for loans between £7,500 and £15,000 have already tumbled by 1% in the space of a year: M&S Money was the market-leader with its 6% offer in February 2012.
If you are struggling to cover the cost of essential outgoings, compare personal loans with Money Expert.