UK lenders have begun 2012 by cutting their loan rates and making it cheaper for people to borrow .
According to comparison site Moneyfacts.co.uk, seven lenders have dropped their loan rates since the start of the year, with some rates currently at their most affordable level in four years.
Earlier this week, Tesco Bank, The Co-operative Bank, M&S Money, Santander, Barclays Bank, AA and Smile have all cut the cost of their loans .
One of the best deals available is a five-year personal loan from M&S Money, which offers a rate of 6 per cent APR on a £10,000 borrowing – the lowest recorded for this amount and term since 2008 and some 2.4 per cent lower than a year ago.
Moneyfacts spokeswoman Rachel Springall said: ” Marks and Spencer Money has reduced its personal loan rate by 0.4 per cent to 6.0 per cent APR for medium borrowing amounts of £10,000 over five years. Those looking for a personal loan to consolidate their debts will benefit from this low rate .”
She added: “Seven lenders have dropped their loan rates since the start of 2012. It will be interesting to see whether other lenders follow suit over the coming weeks.”
“Customers must shop around for the best deal as loan rates are continuing to fall in this competitive market.”
