"Flexibility" has become the principal buzz word for financial services and First National Building Society, which is converting itself into a bank in the autumn, has just brought out what it is describing as the ultimate in a flexible motor loan.

This First Active Car Loan (FNBS will be known as First Active after flotation), which is available for unsecured loans of between £1,000£20,000, will allow the borrower to make overpayments to either speed up the loan or to reduce interest over the term; to take up to two payment breaks during the term and will offer a half per cent interest rate discount on any second car loan taken out. Unlike a number of other car loans on the market there is no upfront payment required.

The APR of 10.7 per cent fixed and 10.5 per cent variable is competitive with other market rates. First National says it will give the prospective borrower an agreement in principal (subject to the usual conditions) within three hours of receiving the loan application.