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M&S offers 'cheapest-ever personal loan' M&S offers 'cheapest-ever personal loan'
(about 2 months later)
M&S Bank has slashed the rate on its personal loans by 0.3 percentage points to offer what could be the lowest-ever rate on a personal loan in the UK. You can now borrow between £7,500 and £15,000 at 5.5%.M&S Bank has slashed the rate on its personal loans by 0.3 percentage points to offer what could be the lowest-ever rate on a personal loan in the UK. You can now borrow between £7,500 and £15,000 at 5.5%.
Customers can choose repayment periods of 12-60 months and the low rate means a £7,500 loan over 36 months would cost borrowers £8,136.36 in total with monthly repayments of £226.01, while a loan of £15,000 over 60 months would result in a total cost of £17,134.80 with monthly repayments of £285.58.Customers can choose repayment periods of 12-60 months and the low rate means a £7,500 loan over 36 months would cost borrowers £8,136.36 in total with monthly repayments of £226.01, while a loan of £15,000 over 60 months would result in a total cost of £17,134.80 with monthly repayments of £285.58.
Rachel Springall, finance expert at Moneyfacts.co.uk, said its research shows that 5.5% APR on a £7,500 loan over a five-year term was the lowest rate offered in at least six years – since the short-lived Moneyback Bank's 5.6% APR loan – adding that Moneyfacts could not find a lower rate anywhere in its records.Rachel Springall, finance expert at Moneyfacts.co.uk, said its research shows that 5.5% APR on a £7,500 loan over a five-year term was the lowest rate offered in at least six years – since the short-lived Moneyback Bank's 5.6% APR loan – adding that Moneyfacts could not find a lower rate anywhere in its records.
Rates on personal loans have risen since, to the point where the lowest rate on a personal loan of £7,500 three years ago was 7.9%.Rates on personal loans have risen since, to the point where the lowest rate on a personal loan of £7,500 three years ago was 7.9%.
"It is not the first time M&S Bank has set the trend for rate cuts," Springall said. "In January it reduced its rate to 6% APR, sparking a price war which is still continuing 10 months on among many lenders. It will not be surprising to see loans of this nature hit the 5% mark before long.""It is not the first time M&S Bank has set the trend for rate cuts," Springall said. "In January it reduced its rate to 6% APR, sparking a price war which is still continuing 10 months on among many lenders. It will not be surprising to see loans of this nature hit the 5% mark before long."
A M&S Bank spokesman said its acceptance rate was high and "the majority" of applicants would get the lowest rate.A M&S Bank spokesman said its acceptance rate was high and "the majority" of applicants would get the lowest rate.
"To advertise the rate at least 51% of people need to be able to access it. In actual fact our acceptance rate for the advertised rate on our personal loans is far higher than this," he said."To advertise the rate at least 51% of people need to be able to access it. In actual fact our acceptance rate for the advertised rate on our personal loans is far higher than this," he said.
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