11 April 2005
Financial experts in the UK are today predicting wholesale reductions to be applied to loan rates by suppliers nationwide.
The news comes in the wake of a decision by banking giant HSBC to cut its own loan rates, providing reductions of up to 40 per cent.
Confirmed earlier today, the bank has now cut the rate for personal loans over £7,000 to a typical rate of just 6.9 per cent APR.
Joe Garner, head of customer propositions, said: "We promised to bring modern retailing and strong value to banking and here's another example. More than half of the loans we give customers are for £7,000 or more and that's where we've made the biggest cut in our rates, at a time when other lenders are increasing theirs.
"Meanwhile, we're aware that the majority of customers choose high street banks for their personal loans so we wanted to make this rate universally available and not simply for online borrowers. Customers can apply through HSBC branches, by phone or online."
Analysts have suggested that rival loan providers are likely to act in the near future.
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