5000 Loan Guide

By Andrew Hagger

Nationwide Building Society, for example, is offering the UK?s lowest personal-loan rate, of 7.7 per cent APR on loans between £5,000 and £14,999. Sadly, the offer is open only to Nationwide current-account customers, who must apply by 6 October to take advantage of the offer. If you qualify for the deal, a £10,000 loan over five years will set you back just £200.10 per month.

If you’re not a Nationwide customer, then it’s worth taking a look at Tesco Personal Finance at 7.9 per cent APR or YourPersonal Loan.co.uk at 8 per cent APR for the next best deals on a loan of this size.

Another new option is the Personal loan with cashback from M&S Money. The standard interest rate is 8.7 per cent APR on loans between £7,500 and £25,000, but if you apply by 7 September for a loan of £7,500 or more, and for a term of at least 36 months, you’ll receive 10 per cent of your interest back. This effectively reduces the interest to an equivalent rate of 7.9 per cent.

The potential downside of this offer is that to |benefit from the 10 per cent interest rebate, your loan must run its full term, so if you’re someone who refinances their borrowing when you change your car, it won’t be quite so appealing.

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It looks like people looking for a 5000 loan are being hit hardest by lenders, Tim Moss, head of loans at moneysupermarketdotcom has indicated that people looking for loans of £5000 are being stung the hardest, while people taking a £10,000 loan can expect to pay 2 per cent less in interest, this looks like the banks are up to their old tricks of  getting borrowers to take out bigger loans (and probably ones they can’t afford)

It’s worth noting that loan rates have gone down a little in August, if lenders want to re-consolidate their debt they’ll need to keep forcing loan rates down which is good news for borrowers, however the bad news is that that many lenders are only lending to existing customers or applicants with a perfect credit history, so if you’re not Mr. or Mrs. Perfect it looks like you could be in for a hard time finding a 5000 loan at a good rate, if  you can find one at all!

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Barclays is to challenge a recent decision by the Competition Commission to ban the sale of the payment protection insurance alongside credit cards, loans and mortgages. From October 2010 the sale of PPI will be banned forcing providers to wait seven days before contacting customers and try to sell them the cover.

The ban is designed to increase competition in the payment protection insurance market, It’s hoped the changes will make it easier for borrowers to change providers and get better rates. It will also help borrowers get rid of the little voice in their heads that says ‘If I don’t take the insurance, they won’t give me the loan”

Barclays justify their case by claiming that the evidence collected by Competition Commission’s investigation is not justified.

A Barclays spokeswoman said: “The Barclays appeal does not challenge the whole report but is targeted specifically against two points.

“The main area of concern is the point of sale ban which, it is felt, is not justified by the evidence that has been provided.

“Additionally, the scope of the market definition set by the Competition Commission is being challenged.

“The decision to appeal these points has not been taken lightly. However Barclays will continue working on the implementation of all of the remedies contained in the Competition Commission’s report as they are applicable.”

Lloyds Banking Group is also supporting the group, yes – the same Lloyds that the  Government holds a 43% stake in!

Source: The Press Association

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