The new typical loan rate of 6.1 per cent will only be available to existing first direct customers, who can expect an instant decision on applications and, in most cases, instant access to the loan itself.

Loan repayment periods are variable, depending on the individual customers’ requirements, and can be anything from 12 months up to seven years in length.

Product development manager at first direct, Will Gratton, said that the reduced rate offer had come at a good time of year.

“This is the traditional time for people to start thinking about home improvements,” he commented. “Our new rate will be a great boost for people looking to buy a new kitchen or add a conservatory.”

first direct is the leading internet bank and a subsidiary of global financiers HSBC. It is the self-styled “most recommended bank” in the UK.

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