Lenders decrease rates for unsecured loan deals

After some years of slowdown due to credit crunch, it seems that the unsecured loan market is returning to life, which is proved by the price war that has been started between loan providers.

uSwitch.com has informed about increased competition from lenders in the unsecured loan market.

The key players fighting for the most competitive loan deal are Santander and the Nationwide. The former decreased its unsecured loan rate to 7.3%, and the latter immediately responded by decreasing their interest rate to just 7.2%. In turn, Santander has matched this rate for people who are searching for a loan deal online.

However, these deals can only be availed for amounts greater than £7,500. When it comes to small unsecured loans, rates are still very high.

Not only these two companies are waging war for the cheapest deal now. Such supermarket giants as Sainsbury’s and Tesco are currently offering incredibly cheap interest rates for large unsecured loan deals.

Although this battle for the best rates is good news for borrowers, in particular for those who are shopping around for the most competitive debt consolidation loan following the winter holidays, financial experts are worried that some people might find it tempting to apply for larger amounts than they really need to in order to snap up better rate on their deal.

 


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