M&S; loan rate cut as scrappage scheme boosts car buying
05 November 2009 / by Rachael Stiles
M&S is cutting its loan rate to help consumers, as car purchasing has seen a boom in recent months since the Government’s scrappage scheme came into force.
Customers applying for an M&S loan will find the rates cut from an average 9.9 per cent to 8.7 per cent APR, on personal loans of between £7,500 and £15,000.
The new loan rate is also available with the M&S Car Buying Plan, which allows borrowers to defer a fixed percentage of their loan; at the end of the loan term, they can either keep the car and continue making monthly payments until it is fully repaid, or keep the car and pay off the remainder of the loan with a lump sum, or, they can sell the car and use the money to pay off the remainder of the loan.
In the summer months during the run up to the new registration in September, M&S loans saw the volume and value of lending double, which M&S believes can be explained by the Government’s vehicle scrappage scheme, whereby car owners can trade in their old car for a £2,000 contribution towards a brand new one, providing their car is at least 10 years old.
The reduction in the M&S loan rate follows an announcement by the Government that it has extended the scheme with a further £100million, enough for a further 100,000 new cars and vans, due to consumer demand.
Commenting on the new rates, Colin Kersley, chief executive of M&S Money, said: “It’s good to see that increased numbers of customers have been able to change to new, more environmentally friendly models. With the new offer we hope that more will be able to upgrade their cars. We’ve been providing personal loans for over 20 years, and it is our aim to remain competitive and innovative in the market”.
© Fair Investment Company Ltd
| Lender | Min – Max Loan | Credit History | Representative APR | Term | Apply |
|---|---|---|---|---|---|
 Zuto Car Loans |
£1,500 – £50,000 | Good to Poor Credit | 19.1% | 2 to 5 Years | Get Quotes > |
| Take charge of your car finance with Zuto. Loans of £1,500 – £50,000 for 2-5 years. Representative Example: The Representative APR is 19.1% (fixed) so if you borrow £7,500 over 49 months at a rate of 19.1% p.a. (fixed) you will repay £218.78 per month and repay £10,501.26 in total. b> | |||||
| Provider | Loan Amount | Credit History | Rates From | Term | |
|---|---|---|---|---|---|
 Zopa Loans » |
£1,000 to £25,000 | Good Credit Only | 3.0%
APR (£7,500-£15,000) |
1 year to 5 years | Get Quotes > |
| Loans from £1,000 to £25,000. Fixed monthly payments and no set-up charges. 3.0% APR Representative. A loan of £10,000 over 5 years will cost you £179.68 per month at a representative 3.0% APR. The total cost after 5 years is £10,780, which includes £780.80 interest at 3.0% fixed and a £0 fee. The total amount of credit is £10,000. The rate and fee you are offered will depend on your individual circumstances | |||||
 Santander Loans » |
£1,000 to £20,000 | Good Credit Only | 3.00%
APR (£7,500-£15,000) |
1 to 5 years | Get Quotes > |
| Loans from £1,000 to £20,000. Instant online decision. Representative 3.0% APR. Based on a loan amount of £10,000 over 60 months at an interest rate of 3.0% p.a. (fixed). Monthly repayment of £179.51. Total amount repayable £10,770.60. | |||||
 Hitachi Personal Finance Loans » |
£2,500 to £25,000 | Good Credit Only | 3.3%
APR (£5,000-£25,000) |
2 to 5 years | Get Quotes > |
| Loans from £2,500 to £25,000. Fixed monthly payments and no set-up charges. 3.3% APR Representative. A loan of £5,000 over 3 years will cost you £135.61 per month at a representative 3.3 APR. The total cost after 5 years is £8,136.60. The rate and fee you are offered will depend on your individual circumstances | |||||
 AvantCredit Loans » |
£1,000 to £20,000 | All Credit Histories Considered | 42.5%
APR |
1 to 6 Years | Get Quotes > |
| Rebuild Your Credit. Instant Online Decision using ‘soft’ credit searches (Won’t affect your credit score). Funds as soon as same day. No early repayment fees. Dedicated Customer Support Team. Representative Example: If you borrow £3,000 over 3 years at a rate of 31.9% per annum (fixed) you will repay £137.31 per month & £4,943.25 in total. | |||||
 118 118 Loans » |
£1,000 to £20,000 | All Credit Histories Considered | 99.90%
APR |
1 to 2 Years | Get Quotes > |
| Interest Rates from 35.9% – 99.9%, depending on the information you provide in your application. Fixed monthly repayments. Instant Online Decision. Representative Example: The Representative APR is 99.9% – Based on an assumed loan amount of £1,500 over 24 months at an interest rate of 71.3% p.a. (fixed) you would pay £118.88 a month and £2,853.12 in total. | |||||
| Lender | Min – Max Loan | Credit History | Representative APR | Term | Apply |
|---|---|---|---|---|---|
 Nationwide Loans |
£7,500 – £14,999 | Excellent Credit Only | 3.90% | 1 to 5 Years | Get Quotes > |
| 3.90% APR for new customers. 3.60% APR for existing customers. Loans of £7,500 – £15,000 for 1-5 years. Representative Example:If you borrow £10,000 over 5 years at a Representative rate of 3.9% APR fixed and an interest rate of 3.90% you would pay £183.41 per month. Total charge for credit will be £1,004.48. Total amount repayable is £11,004.60. b> | |||||
 Santander Loans |
£7,500 – £20,000 | Excellent Credit Only | 4.44% | 1 to 5 Years | Get Quotes > |
| All | |||||
 RateSetter Loans (Excellent Credit History Only) |
£1,000 – £25,000 | Excellent Credit Only | 7.00% | 6 Months to 5 Years | Get Quotes > |
| Loans from £1,000 to £25,000. Fixed monthly payments and no set-up charges. 7.0% APR Representative. Based on an assumed loan amount of £5,000 over 24 months at an interest rate of 7.0% p.a. (fixed). Monthly repayment £223.86. Total amount payable £5,372.64 | |||||
 AvantCredit Loans |
£1,000 – £20,000 | Poor Credit | 48.50% | 1 to 3 Years | Get Quotes > |
| Provider | Loan Amount | Credit History | Rates From | Term | |
|---|---|---|---|---|---|
 Prestige Finance Loans » |
£10,000 to £250,000 | Good Credit Only | 4.45% | 3 to 25 Years | Get Quotes > |
 Precise Loans » |
£20,000 to £100,000 | All Credit Histories Considered | 4.45%
APR |
3 to 30 Years | Get Quotes > |
 Shawbrook Loans » |
£15,000 to £200,000 | All Credit Histories Considered | 4.49%
APR |
3 to 25 Years | Get Quotes > |
Precise Loans » |
£20,000 to £100,000 | Fair Credit | 6.74% | 3 to 30 Years | Get Quotes > |
 Central Loans » |
£10,000 to £50,000 | All Credit Histories Considered | 9.0%
APR |
5 to 25 Years | Get Quotes > |
| http://www.fairinvestment.co.uk/images/Logos/Tables/central trust.gif | |||||
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
| Provider | Min – Max Loan | Credit History | APR | Term | Max LTV | Apply |
|---|---|---|---|---|---|---|
 Masthaven Loans |
£5,000 – £80,000 | Fair Credit | 9.95% | 3 to 25 Years | 60% | Get Quotes > |
|
£10,001 to £50,000 | Poor Credit | 15.00% | 5 years to 25 years | 70% | Get Quotes > |
 The Loans Engine » |
£10,000 – £500,000 | All Credit Profiles Considered | 15.10% Typical (Variable) |
3 Years – 25 Years | Up to 90% | Get Quotes > |
| The Loans Engine are a broker, not a Lender. The Loans Engine will connect you with a Lender suitable for your needs. They do not charge you an upfront fee but if your application is successful a Broker commission may be charged. | ||||||
 Evolution Loans » |
£3,000 to £10,000 | Fair Credit | 19.60% | 3 to 10 Years | 90% | Get Quotes > |
Evolution Loans » |
£5,000 to £10,000 | Poor Credit | 30.60% | 3 to 10 Years | 120% | Get Quotes > |
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
| Lender | Min – Max Loan | Credit History | Representative APR | Term | Apply |
|---|---|---|---|---|---|
RateSetter Loans |
£1,000 – £25,000 | Excellent | 7.90% | 6 Months to 5 Years | Get Quotes > |
| Loans from £1,000 to £25,000. Fixed monthly payments and no set-up charges. 7% APR Representative. Based on an assumed loan amount of £5,000 over 24 months at an interest rate of 7.0% p.a. (fixed). Monthly repayment £223.86. Total amount payable £5,372.64 | |||||
Nationwide Loans |
£1,000 – £2,999 | Good Credit Only | 13.70% | 1 to 5 Years | Get Quotes > |
| 3.90% APR for new customers. 3.60% APR for existing customers. Loans of £7,500 – £15,000 for 1-5 years. Representative Example: 3.90% APR Representative (fixed). Based on an assumed loan amount of £10,000 over 60 months at an interest rate of 3.90% p.a. (fixed). Monthly repayment £183.41. Total amount payable £11,004.60. b> | |||||
Santander Loans |
£1,000 – £2,999 | Good Credit | 21.14% for loans up to £2,999 | 1 to 5 Years | Get Quotes > |
| All | |||||
AvantCredit Loans |
£1,000 – £20,000 | Poor Credit | 48.50% | 1 to 3 Years | Get Quotes > |
 UK Credit (Guarantor Loan) |
£1,000 – £5,000 (Guarantor Loan) | All Bad Credit Considered | 53.80% | 1 to 5 Years | Get Quotes > |
Fair Investment Company is independent and provides a selection of some of the leading loan deals available. Our service does not compare or contrast all of the loan deals currently available in the market. If you would like to arrange any of the products shown in the table please click on the “Apply” link which will take you to the provider’s website where you will be able to view further details of the product and apply online.
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