Loan rates hiked by Nationwide

Borrowers looking for cheaper deals on personal loan rates may be disappointed if they were considering going to Nationwide, as the building society is increasing its rate from 7.7 per cent to 7.9 per cent as of tomorrow (October 7th).

Although the institution claims to be the best-buy for personal loans on the high street, this remains true only for Flex Account customers, My Finances reports – and new debtors have until the end of the day today to take advantage of the lower rate.

Nationwide does offer loans to those who have not been with the bank long, but it does not advertise a typical rate, thereby rendering it impossible for consumers to assess the costs of a loan until it is applied for, the site added.

Last month, Hannah-Mercedes Skenfield of moneysupermarket.com stated that debtors could soon be helped by reductions in mortgage rates, following the convergence of the base rate and Libor signalling a return to pre-credit crunch market conditions.

By Sarah Adie