Borrowers advised to consider mortgage options as well as personal loans

Wed, 07 Feb 2007

Personal loan customers have been warned that lending rates are on the increase after the recent spate of base rate rises.

Since the start of August 2006, national interest rates have increased by a total of 0.75 per cent and currently stand at 5.25 per cent.

Michelle Slade, personal finance analyst at financing website Moneyfacts.co.uk, has pointed out that a number of personal loan providers now appear to be responding to these changes since "personal loan rates are creeping up again".

Indeed, she points out that some personal loan rates have increased by up to eight per cent in recent weeks for some borrowers.

Consequently, now may be a good time to consider other financing options if a customer is in urgent need of releasing some cash, Ms Slade argued.

"Dependent on the loan size and term, other forms of lending such as credit cards, flexible loans or … a further advance on your mortgage may be more suitable," she said.

Instead of taking out a personal loan, some borrowers may wish to start a search for a remortgage deal.

This involves paying off an existing mortgage with the proceeds of a new mortgage, typically to release extra funds.

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

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