Rate cut on first direct personal loan

The personal loan offering from HSBC subsidiary first direct has seen a rate reduction from 7.4 per cent to 6.1 per cent for loans between £5,000 and £25,000.

Applicants, who must already be first direct customers, will receive an instant decision on their application and in most cases funds will be available immediately in customers’ first direct current accounts.

The loan provider’s loan package offers fixed monthly repayments over durations ranging from 12 months to seven years.

Will Gratton, product development manager at first direct, said: “This is the traditional time for people to start thinking about home improvements.

“Our new rate will be a great boost for people looking to buy a new kitchen or add a conservatory.”

According to first direct, it has been the most recommended UK bank and had the most satisfied customers for the last 13 years, according to figures from MORI and Research International.

The company also offers loans for amounts ranging from £1,000 to £5,000.