- Nationwide has doubled its maximum loan to £50,000 from £25,000
- In five years, the APR would be 8.9%
- We look at how the new loan compares to other major lenders.
Nationwide Building Society has become the latest lender to offer a £50,000 personal loan.
Britain’s largest building society has doubled its maximum personal loan to £50,000 from £25,000.
The move comes amid rising construction costs at a time of year when many homeowners traditionally embark on home improvements.
The new loan will be available to Nationwide current account holders. Customers can apply online, in branch or by phone and receive the money the same day.
We look at how the new £50,000 loan compares to other major lenders.
High value loan wars: Nationwide has become the latest lender to offer a £50,000 loan
How does it compare to other lenders?
Over five years, the representative APR on Nationwide’s £50,000 loan is 8.9 per cent.
For longer terms, you will need to make a personalized quote, without any search being recorded on your credit record.
You can repay the loan within seven years.
First Direct, NatWest/RBS, HSBC Premier and Shawbrook Bank also offer £50,000 personal loans. The APR for these ranges from 7.9 percent to 9.9 percent.
Nationwide does not charge an early settlement fee if the customer wishes to repay the loan early.
As with most loans, if you make overpayments, the amount of interest you pay may be reduced.
first live
Over a five-year term, a £50,000 loan from First Direct has an APR of 7.9 per cent.
Monthly payments would amount to £1,004.93 and the total amount repaid would be £60,295.93.
First Direct loans can be repaid within one to eight years.
To take out a loan with First Direct, you must have a First Direct current account and an annual income or pension of £10,000 or more before tax.
NatWest/RBS
A five-year loan of £50,000 from NatWest or RBS, which is part of the banking giant, has an APR of 9.9 per cent.
Monthly repayments would be £1,049.60 if you took out a loan with NatWest or RBS for a total amount of £62,976.
To get a loan from NatWest or RBS, you must have held a current account with either lender for more than three months.
Loans between £7,500 and £50,000 can be repaid over the course of one to 10 years.
HSBC Prime Minister
A five-year £50,000 loan from HSBC Premier has an APR of 7.9 per cent.
The monthly payments with this HSBC Premier loan would be £1,004.93 and the total amount to be repaid would be £60,295.93.
You must have an HSBC Premier account to obtain this loan.
Loans worth between £15,000 and £50,000 can be repaid over the course of eight years.
Andrew Hagger, financial expert at Money Comms, said: First Direct (7.9 per cent), NatWest/RBS (9.9 per cent), HSBC Premier (7.9 per cent) lend up to £50,000 in personal loans, per which Nationwide is not the first, but still in the minority.
“The rates are higher than with a mortgage, but if you’re looking to make some home improvements, it’s much faster and you can get the money in a day or two, plus there’s no mortgage or appraisal fees and no amortization fee early either.’
