Big banks not offering best personal loan rates, expert claims

Mon, 03 Apr 2006

Personal loan rates offered by some high street banks seem unaffected by the fact that interest rates are at an all-time low, one expert claims.

However, those trying to find a personal loan continue to sign up for deals offered by high street lenders, Claire Alvey, personal loans manager at Alliance &Leicester, comments.

"Despite interest rates falling over the last few years, many of the big banks have continued to offer loan rates twice as high as the base rate in some cases," she notes.

Still, big banks continue to dominate somewhat in the personal loans market, Ms Alvey says.

She urges those trying to find a personal loan to not just walk into their local bank, as they could save money by looking elsewhere for a more competitive deal.

The interest rate charged on personal loans is "very important", according to the personal loans manager.

A difference of four per cent, or even two per cent, between personal loan providers' interest rates can make a "massive difference" to repayments, Ms Alvey concludes.

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