Cheap Unsecured Loans
Who offers the cheapest unsecured loans?
Thanks to today's ultra-low interest rates, cheap unsecured loans are available from a wide range of lenders. At the time of writing, it's possible to borrow money for as little as 6.0% APR – which works out as just £151 per month for £5,000 over three years.
Despite recent rises in the Bank of England base rate, today's interest rates are still very low – which means that cheap unsecured loans are widely available. According to the MoneyFacts Web site (www.moneyfacts.co.uk) at the beginning of January, you could get cheap unsecured loans with APRs as low as 6.0%. If you borrow £5,000 over three years without payment protection insurance, that works out as just £151.84 per month.
Because the market for cheap unsecured loans is so competitive, you'll find that many lenders offer the same or virtually identical rates as each other. Northern Rock currently offers an APR of 6.0%, but the competition isn't far behind: Sainsbury's Bank offers 6.5%, Cahoot and Lombard Direct both offer 6.6%, and both Nationwide and Direct Line's rate is 6.7%.
In each case the rates quoted are typical APRs, which means the APR quoted is the rate offered to the majority of borrowers. If your finances are in good shape and you're borrowing a reasonable sum – usually £5,000 or more – then you can expect to be offered the typical APR; if your credit rating is a bit ropey or you're borrowing a fairly low amount, expect to pay slightly more.
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