Nationwide announces £50,000 payments for customers who ‘pass’ check

Nationwide has “doubled” a key benefit for customers in a major Cost of Living boost. The UK’s biggest building society, Nationwide, which is rivalled by the likes of Lloyds, HSBC UK, Santander, NatWest and more, has doubled the maximum personal loan it will offer borrowers to £50,000.

The society previously offered up to £25,000 for qualifying customers. The increased loan amount will be available to Nationwide current account holders who pass its affordability checks, the building society confirmed on Friday (May 17).

The loans can be arranged over one to seven years and there is no charge to pay off the borrowing early. Andrew Hagger, a personal finance expert at website Money Comms, said the building society’s move meant they were still in the minority.

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But the financial expert went on, and added: “I think it’s 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 worry about and no early repayment charge either.”

Darren Bailey, the head of personal loans at Nationwide, said in a statement after the rule change yesterday: “Whether you’re looking to fund home improvements, a new car or consolidate existing debts, we’ll be able to meet more of our customers’ borrowing needs.”

And Mr Bailey said: “As a responsible lender it is important we make sure customers don’t overstretch themselves. Each loan application is individually assessed to make sure people can afford the repayments alongside their existing and any future outgoings.

“Those applying for a personal loan can get a soft quote which advises them if they are likely to be accepted and at what APR without impacting their credit file, allowing them to make an informed borrowing decision.”