Nationwide current account holders who meet the necessary affordability criteria will have access to the increased loan amount
Nationwide has significantly enhanced a key benefit for its customers, providing a substantial Cost of Living boost. The UK’s biggest building society, Nationwide, which competes with major banks like Lloyds, HSBC UK, Santander, and NatWest, has now doubled the maximum personal loan it offers to borrowers, raising the limit to £50,000.
Previously, the society offered a maximum of £25,000 to eligible customers. Nationwide current account holders who meet the necessary affordability criteria will have access to the increased loan amount, as confirmed by the building society on Friday.
Customers can take out these loans over a period ranging from one to seven years, and they will incur no fees for early repayment of the loan.
Andrew Hagger, a personal finance specialist at Money Comms, said that while Nationwide’s decision places them in a relatively small group, it is indicative of wider trends.
Hagger added: I think it is a sign of the times that you can now apply for a £50,000 unsecured loan it may be more expensive than a mortgage further advance rate wise, but way quicker to arrange plus no fees to concern about and no early repayment charge either.
Following the implementation of the new rule yesterday, Darren Bailey, Nationwide’s head of personal loans, said: Whether you are looking to fund home improvements, a new car or consolidate existing debts, we’ll be able to meet more of our customers’ borrowing needs, reports Birmingham Live.
Bailey said: As a responsible lender it is important we make sure customers do not overstretch themselves. Each loan application is individually evaluated to make sure people can afford the repayments besides their current and any future outgoings.