The move by Derbyshire now means the top ten average for personal loans over £7,500 has now dropped to 5.94% – the lowest rate since February 2006.

Tim Moss, head of loans and debt at MoneySupermarket.com, said: “The move by Derbyshire Building Society could be great news for anyone who is looking to borrow a larger amount via a personal loan.

“As we have seen over recent months, when one lender moves, others tend to follow, so we could see the personal loan market hotting up – good news, especially when rates are falling to below credit crunch levels.”

Moss does highlight that the best deals are generally only available to consumers with excellent credit histories.

Moss added: “Those with less than perfect records may be offered a different rate and lenders only have to offer the advertised loan rate to 51% of successful applicants, so although a rate may initially appear attractive, it may not be the one you receive in the end.”

Before applying for a loan, or for any credit product, it’s a good idea to check your credit history so you have a clearer idea of the products you are more likely to be accepted for based on your credit score, as too many can leave a footprint on your credit history.