Derbyshire BS launches cheapest personal loan - but only for a week

Derbyshire BS has cut the rate on its personal loans of between £7,500 and £15,000 to 5%. But you only have a couple of days to take advantage!

Competition in the personal loan market has intensified, with Derbyshire BS slashing its rates further to 5%, from 5.1%.

This makes it the cheapest provider on the market offering loans of between £7,500 and £15,000.

It’s also cut rates on loans up to £7,500 to 6.4%, from 7.2%, and those between £15,000 and £20,000 to 6.8%, from 7.3%.

But these deals are only around for seven days, as part of the building society's "loan sale" and expire at 11pm on 25th February.

Personal loan market

Derbyshire BS now offers the cheapest rate on loans between £7,500 and £15,000. It is narrowly followed by the Clydesdale and Yorkshire banks which both offer an interest rate of 5.1%.

This rate is the cheapest recorded in the past seven years, according to Moneyfacts.

Below I’ve listed the best rates for loans between £7,500 and £15,000.

Personal loan war

In the past few months providers have been fiercely competitive when it comes to interest rates.

Just two weeks ago Derbyshire BS cut its rate to 5.1%, matching similar loans from Clydesdale and Yorkshire banks.

Now Derbyshire has topped the tables again, but given how providers in this market have been acting, it’s likely another lender may cut its rates to keep up.

When getting a personal loan it’s important to remember that the headline rate isn’t applicable to everyone. Only those with a good, or in some cases excellent, credit history will be able to get the best rates.

More on loans:

The cheapest personal loans

Three ways to get an interest-free loan

Why guarantor loans are dangerous

Overpay your loan without penalty

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