The plunge in personal loan prices observed in
2011 appears to have intensified, with HSBC moving into the top
spot of the personal loans market for sums typical for many
passenger car purchases (£8,500 repayable over four years).
The move will do little to settle the nerves
of traditional point of sale motor finance providers, already
frayed by increasingly aggressive pricing from direct lenders.
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Under its M&S Money brand, HSBC is
offering 6% APR to UK residents aged 30-plus, as well as to all
homeowners. The banking behemoth has also cut its rates for
existing UK customers from 6.9% to 6.2%, and from 6.8% to 6.1% for
customers of its telephone banking subsidiary First Direct who wish
to borrow between £7,000 and £15,000.
Tesco Loans reacted today by dropping its
rates from 6.4% to 6.1% for loans between £7,500 and £15,000.
Meanwhile December’s best-buy provider Alliance& Leicester
has retreated from the fray, increasing its rates from 6.3% to
6.8%, as has December’s second-placed lender Nationwide, from 6.2%
to 6.4%.
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