The bank has slashed its rate to 4.5%, but only for a limited time!
Santander has once again slashed interest rates on its mid-sized personal loans. Its new representative APR of 4.5% is the cheapest-ever rate for loans of between £9,000 and £15,000.
And this rate is not just limited to existing customers either, although it's only around for a limited period until 18th December. So if you want to apply you need to be quick. You can apply online and over the phone.
Santander has also cut rates on other loan sizes. Let's see how the loan best buy tables look now.The cheapest mid-size loans
Santander's new 4.5% rate easily puts it at the top of the current best buy table for mid-sized loans. If you want to borrow between £7,500 and £9,000, Santander's representative APR is 4.7%, but this is also the cheapest on the market.
Here are the top rates right now and how much it would cost to borrow £10,000 over five years with each option.
*Available to existing customers onlyLarger loan amounts
There's nearly £80 difference between the Santander loan and its nearest competitor, the HSBC loan available to existing customers.
Smaller loan amounts
Santander has also cuts its rate on smaller loans between £5,000 and £7,500. Although it isn't the market leader here, it has the cheapest high street rate, as the best buy comes from peer-to-peer lender Zopa.
Here are the top rates right now and how much it would cost to borrow £5,000 over five years with each option.
Santander's new lower rate in the larger loan market over £15,000 is also fairly competitive, particularly when you exclude the two market-leading rates, which are only available to existing customers.
Here are the best buys and what it would cost to repay £17,500 over five years.
Total amount repayable on borrowing £17,500 over five years
First Direct existing customer*
Bank of Scotland Existing Customer Loan***
Lloyds Bank Existing Customer Loan***
|Zopa Personal Loan||6.7%||£20,545.80|
Sainsbury's Bank Standard Loan
Tesco Bank Personal Loan
Clydesdale Bank Online Personal Loan
Yorkshire Bank Online Personal Loan
Santander Personal Loan
*First Direct 1st account customers only
**Barclays current account customers only (must have had account for minimum of nine months and have deposited minimum of £1,000 a month)
***Bank of Scotland/Lloyds Bank current account customers who have had their account for three months or longer onlyCompare loans – rates from 5%Related storiesCouple secure start-up loan in 70sHitachi slashes rate for cheaper personal loansLoan scams soar: could you fall victim?The cheapest personal loansThe 10 reasons we're borrowing money
Will you qualify?
It's worth bearing in mind lenders are only obliged to offer their best rate, the representative APR, to 51% of successful applicants.
If you have a history of borrowing money and then paying off your debts on schedule, there's a good chance that you'll be able to borrow at a decent rate. But if you've never borrowed money before or you've been late with repayments, you may not be able to get the best deals.
If you do find you're being turned down, don't keep applying as this could harm your credit rating further.