We like penalty-free loans

We like loans that we can pay off early without penalty. According to online and phone bank Intelligent Finance (IF, part of the Halifax group), the vast majority of people who take out personal loans pay them off early. It says seven out of 10 borrowers clear their loan before the end of the term.

Despite this, many providers still charge customers for repaying their loans early. But IF has come up with a loan which has no repayment penalties and allows customers to offset money in their IF current and/or savings account against their borrowings. It also permits people to make overpayments or take payment holidays.

IF's loan rates (available from August 5) range from 6.9% (loans of £10,000-plus) up to 15.9% (£1,000-£2,999).