Derbyshire Building Society Launches Lowest Personal Loan Rate for Almost Six Years

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Oct 09, 2012, 11:45 ET

CHESTER, England, October 9, 2012 /PRNewswire/ --

Average top ten personal loan rates for £7,500 is now 5.94 per cent APR

Derbyshire Building Society has thrown down the gauntlet in the personal loans market by launching a rate of 5.6 per cent* on loans between £7,500 and £14,999; the lowest headline rate since November 2006 according to analysis by MoneySupermarket.

The move by Derbyshire now means the top ten average for personal loans over £7,500 has now dropped to 5.94 per cent - the lowest rate since February 2006.

Tim Moss, head of loans and debt at MoneySupermarket.com, said: "The move by Derbyshire Building Society could be great news for anyone who is looking to borrow a larger amount via a personal loan. As we have seen over recent months, when one lender moves, others tend to follow, so we could see the personal loan market hotting up - good news, especially when rates are falling to below credit crunch levels.

"However, the best deals are generally only available to consumers with excellent credit histories. Those with less than perfect records may be offered a different rate and lenders only have to offer the advertised loan rate to 51 per cent of successful applicants, so although a rate may initially appear attractive, it may not be the one you receive in the end. Before applying for a loan, or for any credit product, it's a good idea to check your credit history so you have a clearer idea of the products you are more likely to be accepted for based on your credit score."

MoneySupermarket compares the providers of credit reports at http://www.moneysupermarket.com/credit-monitoring/

Notes to editors:

The current average top ten personal loan rate for loans between £7,500 and £15,000 is 5.94 per cent. In February 2006, the average top ten rate was 5.83 per cent.

*Available until 31^st October 2012

MoneySupermarket.com compares (at 30^th August 2012)

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