
Derbyshire Building Society has launched the lowest loan rate in six years for those borrowing between £7,500 and £14,999.
From today its loan will now come with a rate of 5.6% for between one and five years. Derbyshire, part of Nationwide Building Society, had previously charged 5.8%.
The next cheapest is offered by Sainsbury's at 5.7% if you repay in one to three years, or 5.8% if you pay it off in four or five years.
Loan rates have fallen steadily in the last few years. In February last year, M&S Money launched the market's first sub-7% loan since June 2008 — at 6.9% — for loans of £7,500 to £14,999 (see the Loan rates down MSE News story).
However, not everyone will qualify for Derbyshire's 5.6% rate. All advertised loan and credit card APRs are 'representative', meaning only 51% of successful applicants are guaranteed to get that rate. These are likely to be borrowers with good credit histories.
Therefore, up to 49% may end up with a more expensive loan, not to mention people who get rejected outright.
Have your say
This is an open discussion but the comments do not represent the views of MSE. We want everyone to enjoy using our site but spam, bullying and offensive comments will not be tolerated. Posts may be deleted and repeat offenders blocked at our discretion. Please contact fbteam@moneysavingexpert.com if you wish to report any comments.