Personal loan provider Nationwide Building Society has announced a new product which allows customers to borrow money at a low rate of 7.7 per cent APR.
Open to existing customers, moneysupermarket.com commented on the new service by saying that it is the current most competitive personal loan available by "quite some margin".
Tim Moss, head of loans at the site, believes that the announcement could be a sign of green shoots in the credit market as the deal is unsecured, meaning that the bank is lowering its rates despite the risks involved.
He explained: " Loan rates have been going up since the start of the credit crunch - in April 2008 best buy loans were around 7.34 per cent, but have now risen to closer to 9 per cent. This cut by Nationwide is the first suggestion that we may be over the worst in the loan market, let's hope that other providers follow its lead in cutting rates."
Ian Boden-Smyth, spokesperson for the UK Insolvency Helpline, recently said the credit crunch has forced some Brits desperate for money to use high-interest lenders instead of secured personal loans from reputable companies.





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