Loan rates on the rise, figures suggest

7 October 2008

The amount charged by a number of major UK loan providers has increased significantly in recent weeks.

This is according to figures produced by uSwitch.com, which found that eight companies have increased unsecured personal loan rates by as much as nine per cent over the last 28 days.

It found that Black Horse has raised its rates by up to nine per cent, while the Bank of Ireland has hiked its prices up from 8.9 APR to 10.7 APR.

Meanwhile, Lloyds TSB and Marks and Spencer have both increased the rates they charge on unsecured loans by one per cent.

The figures could make unwelcome reading for consumers struggling with high levels of debt.

"As the news agenda overflows with the global financial meltdown, a plethora of loan rate increases have been implemented in the past four weeks," stated Louise Bond, personal finance manager at uSwitch.com.

Recently, the Bank of England revealed that lenders reduced the availability of secured loans to households in the three-month period ending in September by more than they had anticipated they would when questioned in the previous quarter.

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