Competitive personal loan market good news for borrowers

Thu, 11 Aug 2005

Now is the time to consider applying for personal loans, with a "renaissance" in the personal loan market predicted.

Following the Bank of England's quarter-point base rate cut last week, a number of personal loan providers cut their interest rates.

This renewed competition is stirring the personal loan market back to life, commented Stuart Glendinning of price comparison website moneysupermarket.

"These rate cuts firmly indicate a renaissance in the personal loans market," he commented.

The director of personal loans further pointed out that the "most eye-catching change" is Northern Rock's interest rate cut to 5.6 per cent APR – the lowest personal loan deal in the market.

Personal loan provider Abbey has cut interest rates twice in the last two weeks, and it now offers an interest rate of 5.7 per cent APR. Alliance & Leicester also recently launched a new Moneybank Bank personal loan, also with a 5.7 per cent APR interest rate..

"The most encouraging aspect of the renewed activity is perhaps not the actual headline rates available, but the sheer number of different banking organisations now offering competitive loans," Mr Glendinning said.

"This can only be good news for the consumer."

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