A number of lenders have cut interest rates in recent months, perhaps anticipating the three consecutive announcements by the Bank of England that the base rate would remain at 0.5 per cent. The AA, Barclays, Sainsburys Bank and Tesco revealed interest rate cuts of up to one per cent after a period of prohibitive interest rates as the cost of obtaining a personal loan swelled by more than 40 per cent compared with two years ago. Two years ago, a £5,000 loan was accompanied by average interest repayments of £664; that figure has since risen to £957.
Since the beginning of March, Tesco has dropped interest rates on loans of £5,000 repayable over a five year period from 8.9 per cent to 8.0 per cent, whilst the cost of a similar sized loan from Sainsburys Finance has fallen from an average of 8.8 per cent in February to 7.9 per cent.
Figures from moneysupermarket.com revealed that the average interest rate for the top five personal loans stood at 8.8 per cent in March, compared to 7.34 per cent a year earlier. Experts believe that a borrower’s credit history has become much more important, as lenders look to avoid bad debt .
Loan Lenders Cut Rates Since March
Loan Lenders Cut Rates Since March
Fri, 05 Jun 2009
Recommended links
Loan Application FormPersonal Loans Advice
Best Secured Loan Deals
Loan Calculator Tool
Bad Credit Loan Lenders
FSA Warns Lenders to Stop Selling PPI with Loans
Personal Loans Down Reveal FLA
Anticipated Base Rate Cut to Nullify Some Loan Repayments
Banks Cut Amount They Are Willing to Loan
Personal loan rates cut at Tesco
Personal loan rates cut at Abbey
Rate cuts will not boost personal loan market it the short-term
Lenders Pass on Interest Rate Cut on Loan Products
Interest rates cut on cahoot personal loans
Abbey to Cut Interest Rates on Selected Loans
Loan Rates Yet to Benefit from Base Rate Cuts
Personal loans can cut store card costs, expert claims
Personal loan interest rate cut
Lenders Increase Loan Rates Despite Bank of England Cuts
Interest Rate Cut Yet to Benefit Buy to Let Loans
Nationwide cuts loan rates for third time in three months
Another personal loan interest rate cut
Banks Hiking Arrangement Fees to Cover Interest Rate Cuts
Abbey Cuts Loan Fee
BoE Under Pressure to Cut Interest Rates as Loans Dry Up
Sainsbury's Bank Cuts Personal Loan Rates
Rates cut on Abbey's unsecured personal loans
| Personal loans news |
|---|
| BBA Reveals Home Loan Dip - Mon, 26 Jul 2010 |
| Government to Conduct Personal Loan Review - Thu, 22 Jul 2010 |
| Positive Home Loan Trend Continues in May - Fri, 16 Jul 2010 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company
Paying Too Much?
7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form