It’s Friday, so as Martin Lewis fans will know, ‘it’s time to do some deals’. Today, Martin has great news for anyone needing to borrow, as he’s found five lenders charging a measly 2.9 per cent APR if you’re looking for an amount between £7,500 and £15,000.
‘There’s big competition among a string of lenders right now,’ says Martin. ‘Usually just a couple fight to be cheapest but now Tesco Bank has dropped rates, which makes it five lenders at the top of the best-buy tables for larger amounts – with their rates close to all-time lows.’
‘And because there are now five lenders charging this low rate, intuitively, you’ll be more likely to be accepted by one of them,’ says Martin.
Martin Lewis’ loan picks
The following are cup-gently charging 2.9 per cent representative APR, for loans between £7,500 and £15,000
Of course, Martin doesn’t recommend you ever take out a loan for the sake of it. ‘Borrowing should only be done if you NEED it – for example, your car for commuting in has packed in, not because you want to go on holiday,’ he says. Other good reasons might be to fix a boiler on the blink, or replace an appliance on its last legs.
It’s also with noting that all these loan rates are representative APR. That means only 51 per cent of accepted applicants will get the rate advertised. And you’ll only know the rate you will get by applying – it could be a lot higher, depending on your circumstances and credit history.
The downside of applying for a loan and not then getting it (or being offered a high rate of interest) is that regardless, it will put a mark against your credit rating. So before you apply, it’s well worth checking if you are likely to be accepted using Martin’s Loans Eligibility Calculator.
‘If in doubt, don’t risk it,’ our favourite Money Saving Expert advises.
How much will I pay?
According to Admiral – one of Martin’s big five – if you were to borrow £10,000 over 60 months at 2.9% APR, you would pay £179.07 monthly and the total amount you would repay would be £10,744.20.
So that five-year loan would essentially cost you £744.20, provided you keep up with your repayments.