After several months of base rate cuts the banks have finally started to move on their personal loan rates but not always in the direction you might expect.

Abbey National, which had been extremely competitive across all the price bands, has put its rates up, particularly for higher loans. The move has left Abbey National closer to the other high street banks but it remains the most competitive at the typical car loan of £5,000 over three years.

At the other end of the scale, HSBC has cut 1% off its two top price brands, bringing its £15,000 and above rate down to 8.9% which is more in line with a typical direct lender. However it has left the lower loan rates untouched.

The banks are always willing to lend at lower rates to regular, good customers and Barclays continues to promote personalised rates, suggesting customers should talk to their bank advisers in order to discuss their loan requirements. NatWest also offers Gold Advantage rates for regular customers.

These offers allow the banks to maintain some flexibility while holding profit margins on loans high. However, they also delay the loans application process.