The latest move in the increasingly predictable game of tit-for-tat being played by Britain's personal loan providers was made by the Derbyshire Building Society today.
Coming three weeks after Clydesdale and Yorkshire Banks announced a market-leading 5.1 per cent Representative APR rate on loans between £7,500 and £15,000, the Derbyshire has announced it will be matching that rate for its online customers.
The rate is available to 51 per cent of successful applicants on loans of between one and five years which are taken out with via www.thederbyshire.co.uk or through a comparison website.
Price matched: The Derbyshire Building Society has matched Clydesdale Bank's market-leading personal loan rate.This would mean a £10,000 loan taken out over five years would result in £11,350.25 being paid back at £189.17 a month.
Banks and building society have been locked in battle over personal loan rates for the past year, which has seen the rates drop to the lowest
M&S Bank, Clydesdale, the AA, The Co-op, Sainsbury's Bank and Tesco Bank are among those to have slashed their prices in this time.
Paul Wootton, head of personal loans at Nationwide, which merged with the Derbyshire in 2008, said: 'Our new market leading Derbyshire personal loan rate provides a great opportunity for those looking for a low rate personal loan deal.'
More... This is Money loan finder Clydesdale Bank sets pace on personal loans with market-leading 5.1% rate Sainsbury's Bank strikes the latest blow in personal loan price cut war with 5.4% rateMr Wootton said that loans at such a rate gives people looking to consolidate their debts in the New Year a chance to pay them off at a lower rate.
However, there are alternatives to a consolidating loan, which are set out in This is Money's guide to reducing your debts.
As well as Derbyshire and Clydesdale, Sainsbury's Bank also offers a 5.1 per cent rate, but only on loans for one to three years between £7,500 and £15,000.