Financial site sees 'lower loan rates'

17/04/2009

Loan conditions for UK consumers will continue to ease in the near future, Moneysupermarket.com claimed yesterday.

According to the financial website, the average annual rate carried by the top-five best-buy unsecured loans stood has dropped from 8.88 to 8.68 per cent over the last week.

The decline, while modest, nevertheless represents the first time when personal loan rates have fallen since August 2008 - good news for debtors attempting to renegotiate their loans on more favourable terms.

This could signal that Bank of England interest rate cuts could be filtering through to the loan market.

The institution has slashed its lending rate from five to just 0.5 per cent since the middle of last year.

Tim Moss, head of loans and debt at moneysupermarket.com said: "At long last competition seems to be returning to the loan market which is great news for consumers.

"A number of providers have reduced loan rates or launched new, cheaper products, in recent weeks - welcome relief to borrowers."

In March 2008, the top five loans carried a typical rate of 7.34 per cent.

Tags; Debt Management and Banking, Credit Card Lifestyle,

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