Credit crunch ends low rate loans
2 July 2008
Low rate loans are now increasingly difficult to find, according to new research.
Independent finance information provider Moneyfacts.co.uk has found the lowest priced personal loan is on offer at 7.2 per cent – an increase from 5.6 per cent in June 2006.
On a £10,000 loan, to be repaid over five years, today`s higher annual percentage rates (APRs) mean consumers will pay £423 more than they would have two years ago, according to Moneyfacts.co.uk.
The website attributes the rise to lenders finding it difficult to find money in the current financial climate. The higher APR is likely to be the result of higher costs they encounter.
Moneyfacts.co.uk describes the figures as "more unwelcome news for consumers", particularly as many people are looking at consolidation loans to manage their debts.
Recently, insurer Zurich reported over a third of people do not expect the credit crunch to affect them and many believe it to be a myth.
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