Nationwide launches new personal loan deal

Nationwide has introduced a new personal loan deal.

Nationwide current account customers can now benefit from a new personal loan rate being offered by the lender.

As of yesterday (September 7th), the financier is providing a loan of up to five years for between £7,500 and £14,999 at a typical annual percentage rate of 7.6 per cent for its main FlexAccount customers.

This new deal - which could also be of interest to Nationwide savings holders - can be taken out either online, over the telephone or in one of the building society's branches across the country.

The product represents a market-leading personal loan fee and Graham Pilkington, divisional director for banking at Nationwide, remarked: "We are delighted to offer the lowest standard personal loan rate in the UK to our customers".

He added that he hoped the deal would be attractive to anyone looking to make a major purchase prior to the VAT increase in January 2011.

Meanwhile, Ed Bowsher of lovemoney.com said recently that the use of personal loans could rise next year as people struggle following the recession.

By Mark Hornby