- Nationwide has doubled its maximum loan to £50,000 from £25,000
- 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 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 on the 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 a five year term, the representative APR for Nationwide’s £50,000 loan is 8.9 per cent.
For longer terms, you will have to go through a personalised quote – with no search registered on your credit record.
You can pay back the loan over a seven year term.
First Direct, NatWest/RBS, HSBC Premier and Shawbrook Bank also offer £50,000 personal loans. The APR for these range from 7.9 per cent to 9.9 per cent.
Nationwide does not apply an early settlement charge if the customer wants to repay the loan early.
As with most loans, if you make overpayments the amount of interest you pay may reduce.
First Direct
Over a five year term, a £50,000 loan from First Direct carries an APR of 7.9 per cent.
The monthly repayments would come to £1,004.93 with the total amount paid back £60,295.93.
First Direct loans can be paid back over a term of one to eight years.
To get a loan with First Direct, you need to 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 taking out a loan with NatWest or RBS for a total amount of £62,976.
To take out a NatWest or RBS loan you must have held a current account with either lender for more than three months.
Loans between £7,500 and £50,000 can be paid back over the course of one to 10 years.
HSBC Premier
A £50,000 five-year loan from HSBC Premier has an APR of 7.9 per cent.
Monthly repayments with this loan from HSBC Premier would be £1,004.93 and the total amount to be paid back would be £60,295.93.
You must hold an HSBC Premier account to get this loan.
Loans between £15,000 and £50,000 in value can be paid back over the course of eight years.
Andrew Hagger, financial expert of 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 on personal loans, so Nationwide are not the first but still in the minority.
‘The rates are higher than with a mortgage, but if you’re looking to carry out some home improvements, it’s much quicker to arrange and you could get the money within one or two days, plus there is no mortgage or valuation fees and no early repayment charge either.’
