Alliance & Leicester slash personal loan rate

Despite recent increases in interest rates Alliance & Leicester has heavily cut its personal loan rate

09:42 12 May 2004

Despite recent increases in interest rates Alliance & Leicester (A&L) has heavily cut its personal loan rate

A&L's personal loan rate now stands just 1.65 per cent above the Bank of England's base rate at 5.9 per cent APR.

The rate reduction from 6.9 per cent means this is now the cheapest rate currently available in the UK.

Andy Bayes, the head of personal loans at Alliance & Leicester explained that this reduction now made the loan even more competitive than those offered by big High Street banks.

Mr Bayes added: "High street banks rely on consumer inertia to enable them to charge higher rates of interest. There has never been a better time to break ranks with the big banks."

The reduction applies to any loan greater than 7,500, and it is also available to existing Alliance & Leicester Premier current account holders and mortgage customers.

Alliance and Leicester adds that there are no arrangement fees for the loans and repayment can be spread over five years.

Consumers can save as much as 1,197.00 on a five year loan of 7,500, compared with major high street banks.