Loan Rates at Seven Year High

Fri, 05 Sep 2008

It has been revealed that interest rates on loans are at their highest point for seven years and credit standards continue to tighten. Interest rates have risen by nearly three per cent on average in the last two years, resulting in the highest interest rates the UK has seen since 2001. Banks are being accused of failing to solve the problems themselves, and are instead passing on the increased costs to customers.

The past few years has been dubbed an era of cheap credit, as banks battled for top spot in the best buy tables in the hope of attracting new customers. Whilst that previous decline may have made the recent hike seem steeper than it is, there is no disguising the fact that interest rates are at their highest point since 2001.

Michelle Slade, from Moneyfacts.co.uk, said, ‘This is extremely bad news for consumers who may be considering consolidating existing debts to try to drive down their monthly expenditure. At a time when every penny counts, if you need a personal loan, you need to make sure that you shop around as it is highly unlikely your bank will offer the best deal’.
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