Spotlight: Loans

Loan providers have received much criticism recently as personal loan rates have been rising, even though the Bank of England base rate is at a record low of 0.5 per cent. Marks & Spencer Money's decision to cut its loan rate is therefore welcome news.

M&S Money has reduced the typical rate for loans of 7,500 to 15,000 from 9.9 per cent to 8.7 per cent. This rate is also available to those wanting an M&S Car Buying Plan, which allows customers to defer paying off a fixed percentage of the loan until the end of the term.

There are then three options: keep the car and carry on making loan repayments until the total amount is cleared; keep the car and pay off the remaining lump sum of the loan or sell the car and use the money to pay off the remainder of the loan.

With the Vehicle Scrappage Scheme having been extended by the Government this is likely to prove a popular financing option. However, this rate is only available to those with an impeccable credit score so check your credit file before applying for this.