Subscribe!cheap loans becoming scarce
new figures reveal that cheap loans are disappearing fast in the UK.
following the most recent rise in the Bank of England base rate, there are now just four unsecured loans available charging less than six per cent interest, and as the pressure continues to grow against expensive payment protection insurance often sold together with loans, these could well disappear as well.Michelle Slade, personal finance analyst at Moneyfacts.co.uk says “At this time of year, when many of us are still recovering from the after effects of our Christmas spending or perhaps trying to commit to our new year’s resolutions to sort out our finances, personal loan rates are creeping up again,”
Figures from the comparison service show since the start of January eight lenders have upped their interest rates, some by as much as eight per cent. Currently 40 per cent of £5,000 three-year loans charge more than eight per cent interest and 16 per cent of loan providers charge more than ten per cent.
“With a difference of 14.8 per cent APR, between the most and least competitive rates, shopping around for the best deal is an absolute must,” Ms Slade said.
“Choosing the wrong deal could be the difference between paying £180 per month or £151 and incurring almost £1,044 extra in interest over the three year term.”
Remember if you are shopping around for a personal loan, always check you are getting the most competitive deal, for both your interest rate and if applicable any insurance cover. Making sure you get it right at the start can save you hundreds of pounds in interest. A great starting point is to get The Loan Helper to check the best deal available for you out of the hundreds on offer from the 16 different lenders on their panel.