- Nationwide has doubled its maximum loan from £25,000 to £50,000
- Over 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 from £25,000 to £50,000.
The move comes against the backdrop of rising construction costs at a time of year when many homeowners traditionally start improving their homes.
The new loan will be available to account holders nationwide. Customers can apply online, in the branch or by telephone 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 for Nationwide’s £50,000 loan is 8.9 percent.
For longer terms, you will need to go through a personalized quote, without a query registered in your credit details.
You can repay the loan in seven years.
First Direct, NatWest/RBS, HSBC Premier and Shawbrook Bank also offer £50,000 personal loans. The APR for this varies from 7.9 percent to 9.9 percent.
Nationwide does not charge an early repayment fee if the customer wants to repay the loan early.
As with most loans, the amount of interest you pay can decrease if you pay too much.
First direct
Over a five-year term, a £50,000 loan from First Direct has an APR of 7.9 per cent.
The monthly repayments would be €1,004.93 and the total amount repaid would be €60,295.93.
First Direct loans can be repaid over terms of one to eight years.
To get a loan with First Direct you will need a First Direct current account and an annual income or pension of £10,000 or more before tax.
NatWest/RBS
A five-year £50,000 loan from NatWest or RBS, which is part of the banking giant, has an APR of 9.9 per cent.
The monthly repayments would be £1,049.60 if you take out a loan with NatWest or RBS for a total of £62,976.
To take out a NatWest or RBS loan, you will need to have 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 ten years.
HSBC Prime Minister
A five-year £50,000 loan from HSBC Premier has an APR of 7.9 per cent.
The monthly repayments with this HSBC Premier loan would be £1,004.93 and the total amount repayable would be £60,295.93.
To get this loan, you must have an HSBC Premier account.
Loans worth between £15,000 and £50,000 can be repaid in eight years.
Money Comms financial expert Andrew Hagger 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, so Nationwide are not the first, but still in the minority.
‘The rates are higher than a mortgage, but if you want to do some improvements to your home you can do that much faster and get the money in one or two days. In addition, there are no mortgage or appraisal costs and no costs for the mortgage. nor are there any costs for early repayment.’