Do you have an impeccable credit record? If so, then 2011 has started with some positive news.

To kick things off Nationwide slashed its personal loan rate for current account holders to a typical 7.2% APR. It says it's "the UK's lowest personal loan rate" which beat the present Santander offer.

However, in retaliation and to the benefit of consumers Santander struck back matching Nationwide's 7.2% APR deal with a broader range of loan amounts covered under the offer. The Santander deal is aimed at those borrowing between £7,500 and £14,950 but is limited to applications made through certain price comparison websites.

Many other leading loan providers such as Tesco, Marks & Spencer and Sainsbury's have also taken the opportunity to review their loan rates. It's worth noting that the reduced rates have been focused on loans over seven thousand pounds.

Those considering a lower loan, say under £5000 can expect the interest rate charged to be significantly higher as this stream of business is often considered to be higher risk and less profitable to the lender.