Borrowers could save hundreds on loans

New research from Nationwide has shown that borrowers with the big five banks across the UK could be overspending by £500 million.

And to encourage people to take out a loan, the building society is offering all those who switch from one of the big five to Nationwide a rate of 6.7 per cent, as well as a cheque for £50.

Steve Clode, marketing director of Nationwide, said: "Unlike credit cards and current accounts, personal loan customers tend to remain with one provider for the life of the loan, which often means they are losing hundreds of pounds through paying higher rates than they need to."

The new rate is available to all borrowers, and could see those who have loans with other providers saving hundreds if they switch to Nationwide.