Customers logging onto the site can access a range of loan providers from some of the UK’s leading names, including Halifax, Marks & Spencer Financial Services, Tesco Personal Finance and Intelligent Finance.

Users are asked a few questions before being presented with a best buy table with a selection of loans that suit their needs, outlining APR, the monthly payments and the total cost of the loan. Once a loan is selected, customers are taken to the lender’s Web site to fill in an application form.

Matthew Brodrick, The MarketPlace, Bradford & Bingley, says currently over 50% of online personal loan applications are rejected: "We have designed the process to reduce the chance of applications being turned down, thus avoiding so called credit footprints which can potentially damage people’s chances of getting a loan in the future."

He adds: "We hope to reverse this trend and expect the site to deliver an 80% success rate going forward."

The site also features specialist loan providers to help customers who have had credit problems in the past.

Research conducted by Bradford & Bingley claims that customers are losing more than £1.2bn a year by not shopping around for personal loans. Only 24% of people admitted they would hunt for the best deal and 43% would simply visit their own bank to arrange a loan, even though they may not be the most competitive.

The research also showed that younger people are more likely to do their homework, with 40% of 18-24 year olds saying they would shop around before committing to a deal, compared to only 19% of 45-54 year olds, 17% of 55-64 year olds and 8% of over 65s.