Personal loan rates 'on the up'

22/08/2008

The cheapest personal loans on the market have increased rates by 1.3 per cent over the past year, uSwitch said today.

According to the price comparison site, this means that borrowers of unsecured credit must now collectively pay £1.2 billion more in interest repayments than they would have done 12 months ago.

Moreover, the new research shows that a toughening-up of policy among loan providers has led to 1.39 million people being turned down for credit over the past year.

Simeon Linstead, personal finance expert at the site, commented: "The loans market is extremely volatile at the moment and best buy deals have become more expensive.

"However, the market is vast and there are still competitive rates for those who take the time to compare the offers available."

uSwitch also found that people who took out small personal loans had been hardest hit by the economic downturn.

Best buy loans worth £1,000, for example, now carry an APR of 19.99 per cent - up 3.44 per cent in just 12 months.

Tags; Current UK Economy, Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•