If you have a good credit rating make sure you take your time and have a good look around before you sign on the dotted line for any loan.
Other things to be wary of when searching for £5000 loans is whether the loan is secured or a personal loan, whenever you can, opt for the personal unsecured loan, the benefits of an unsecured loan is that the interest rate will be fixed, there’ll be no change in repayments which will make it easy for you to budget the repayments, most secured loans on the other hand have a variable rate, meaning if the bank of England borrowing rates go up so too does your repayments, bear in mind that interest rates normally go up much quicker than they come down, for some strange reason! The best £5000 loan is the one that takes the shortest time to repay, as the quicker you pay off the loan the less interest you’ll pay, a 5000 loan over 5 years at 8.7 % would cost £1122 in interest, however the same loan over 3 years would only cost £670 and the difference in repayments would only be around £50 per month, giving you a saving of £450.

If you are currently looking to switch loans to get a better interest rate, be careful, check the small print of your existing loan, many loans have an early repayment fee, which can amount to sizable chunk of change!

If you’re looking for a £5000 loan and have bad credit or don’t want a credit check you can still apply here Bad Credit 5000 Loan just be honest.

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!

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

Sainsbury’s Bank are offering a typical rate of 7.9% APR however this is for loans between £7,500 and £15,000, You’ll also need a Nectar card to get these rates

If you have a  current account with Nationwide you can get  7.7%  for loans of between £5,000 and £14,999.

Marks and Spencer Money has a cashback deal which will repay you 10% of the loan interest if repayments are made  for the full term, tpyical  7.9%.

personal loan.co.uk – part of the Co-op Bank are offering a typical rate of 8% on loans of between £5,000 and £25,000, while Abbey, First Direct, Alliance & Leicester and Smile – are quoting typical rates of 8.9%, however in some cases these rates are for existing customers only.

UK residents that have recently taken out a £5,000 personal loan to get themselves over the recession are being hit with the highest interest rates, the UK  base rate is currently just 0.5 per cent (next review 10 Sep ’09), however the average interest rate for a  £5,000 loan is currently 10.32 per cent, according to a survey by moneysupermarketdotcom.

It seems that ten is the magic number as the best value personal loans are for  £10,000 with interest rates at approx.  8.4% , while a £15,000 loan will be closer to 8.55 per cent.

A recent review of the PPI market for the OFT by the Financial Services Authority found that borrowers that take up personal payment protection suffer huge additional costs, for example, a £ 5000 loan over five years at 6.1 per cent APR actually had an interest rate of 22 per cent when payment protection insurance was factored in.  However lenders that want to push PPI must now show the whole cost including the insurance in their APR. The good news is that  from October 2010 the sale of PPI with  loans will be banned, until then just be careful what you sign up for.