Loan News Northern Rock Launches New Loan
10 November 2005
Northern Rock has launched a new unsecured personal loan with an annual percentage rate (APR) of 5.7 per cent.
The Northern Rock Unsecured Personal Loan is available for loans between £1,000 and £25,000 and customers can spread payments over one to ten years.
The launch of Northern Rock’s newest loan product coincides with its 20 per cent discount on payment protection policies.
Customers can receive an immediate decision on their loan application whether they apply online, by telephone or at any of Northern Rock’s branches across the country.
Northern Rock says the rate offered will depend on the applicant’s credit rating.
Recent figures suggest the average UK adults owes around £4,000 on credit cards and personal loans.
Financial advice website Moneynet says customers should not be seduced by low APRs.
“Consumers are led to believe that the cheapest loan is the one with the lowest APR,” said Moneynet chief executive Richard Brown.
“But this is far from the truth – borrowers should be aware that a loan package does not always do what it says on the tin,” he added.