There’s never been a better time to get a personal loan as another lender drops its rates to a record low.
Santander has cut the rate on its medium-sized personal loans by 0.2% to 4.3%.
New and existing Santander 123 Current Account, 123 Credit Card and Select Current Account customers can get the rate on loans between £7,500 and £20,000, taken out over one to five years.
Non-Santander customers will be able to apply for the rate when borrowing between £7,500 and £15,000 over one to five years.
How it compares
Santander’s new rate is a record low, but only matches the rate on offer from HSBC (on borrowing between £7,000 and £15,000, and only for existing customers) and Hitachi (on borrowing between £7,500 and £10,000).
Our comparison centre can give you a wider view of the market, but below I have listed the cheapest rates on offer for a loan of £15,000 taken out over five years.
|
Loan |
Representative APR |
Monthly repayment |
Total amount repayable |
|
4.3% |
£277.72 |
£16,663.20 |
|
|
4.3% |
£277.72 |
£16,663.20 |
|
|
Clydesdale Bank Online Personal Loan |
4.4% |
£278.64 |
£16,718.40 |
|
Yorkshire Bank Online Personal Loan |
4.4% |
£278.64 |
£16,718.40 |
|
4.5% |
£279.03 |
£16,741.80 |
|
|
4.5% |
£279.03 |
£16,741.80 |
|
|
4.5% |
£279.03 |
£16,741.80 |
|
|
4.5% |
£279.35 |
£16,761.00 |
*Current account customers only
As you can see Santander now offers the market-leading deal for borrowing at the larger end of the scale. HSBC also offers a rate of 4.3%, but this deal is reserved for current account holders.
To keep up to date with the latest offers on personal loans read The cheapest personal loans.
Take advantage now
There’s never been a better time to get a personal loan.
[SPOTLIGHT]Lenders are competing in a race to the bottom to attract borrowers so there’s relatively small differences between the rates on offer.
However, when applying for a personal loan you should bear in mind that you may not receive the headline rate advertised.
Lenders only have to offer their best rate to 51% of borrowers that successfully apply. So if your credit history isn’t up to scratch you could be part of the 49% who may be offered a worse rate.
You should keep an eye on your credit profile. You can get a 30-day free trial with CreditExpert. If you find it needs improving take a look at our article How to repair your credit rating.
More on borrowing:
What REALLY damages your credit rating
The best 0% balance transfer credit cards