Average loan rates continue to rise

27 October 2009

Half of all lenders offering personal loans have upped their rates to customers since the Bank of England dropped its base rate to 0.5% in March, according to new research.

Moneyfacts.co.uk said that in the last six months, £335 has been added to the average cost of a £25,000 personal loan, taking the total increased cost since the credit crunch began to £1,804.

However, a loans expert at Think Money said that while the average interest rate on a personal loan may have risen, the lowest interest rates can still be competitive.

"These findings do highlight the need for would-be borrowers to look around for the best loan deals. For anyone who`s unsure, an expert loans adviser can help."

Tags: loan, loans, personal loans

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