Unsecured personal loan rates ‘increasing’

22 October 2008

Unsecured personal loan rates saw sharp rises between September and October, new research has revealed, as the credit crunch continued to put pressure on lenders and borrowers alike.

The research from uSwitch.com said that eight loan providers put their rates up by an average of 7.85%.

The half-point base rate cut announced by the Bank of England this month was aimed at encouraging lenders to lower their rates on loans and mortgages, but it remains to be seen whether this will work in the long term.

A spokesperson for Think Money said: “The credit crunch has meant that loans have become both more expensive and more difficult to get hold of – but that doesn’t have to mean that people are frozen out of the loans market.

“It’s just more important than ever to speak to a professional loans adviser who understands the market. They should be able to point people in the right direction and help them get the best deal possible.”

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