Personal loan rates at an all-time high, figures show

Mon, 01 Dec 2008

The average cost of a personal loan has hit an all-time high, according to new research.

According to research by Moneysupermarket.com, anyone looking to take out an unsecured loan can now expect to pay nearly triple the Bank of England Base rate in interest.

It found that the average rate for a personal loan is now 8.46 per cent, compared to the base rate of three per cent.

Tim Moss, head of loans at the price comparison website , said: "What our calculations clearly show is that the cost of a personal loan is as apparently uncorrelated to base rate as mortgage rates are."

However, mortgages are linked to the Libor rate, whereas personal loans are not, he added.

Last month, research by Experian found that the number of fraudulent applications for car loans increased by 30.4 per cent in the first three quarters of the year when compared to the same period in 2007.
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