cahoot has announced it is to slash the rate of interest on its flexible loan for all new customers to 5.8 per cent APR.

This makes it the lowest unsecured personal loan available online or on the high street.

The flexible loan gives customers the ability to vary their repayments or make a lump sum payment, without penalty, should they choose to do so.

In addition to this, cahoot also offers a fixed rate loan rate which will remain unchanged at 6.7 per cent APR. This loan allows people to borrow between £1,000 and £20,000, and as with all fixed rate products means that customers know exactly what their payments will be upfront and when their loan will be repaid.

Following the Bank of England base rate increase on May 6th, cahoot will also be passing the full quarter-point rise to savers, increasing the interest rates on its savings account to 4.6 per cent AER and on its current account to 3.85 per cent AER.

All of the changes will be effective from tomorrow, June 3rd.

Since its launch in 2000, cahoot, Abbey’s stand-alone interactive bank, has guaranteed that its current account in-credit interest rate will never be more than 0.5 per cent AER below the Bank of England base rate.