Lenders increase personal loan rates

Mon, 22 Oct 2007

New research has revealed that many lenders have increased their personal loan rates during the last few months following the July base rate increase.

A study conducted by uSwitch.com found that 32 providers have increased loan rates during this period, with the average APR for an offline personal loan rising by one per cent.

Meanwhile, online loan rates have increased by 0.2 per cent since the Bank of England raised the base rate in July.

Mike Naylor, personal finance expert at the firm, said that the current variation of price rates within the loan market is causing "further confusion" for consumers.

"It is far from transparent and a perfect way for the big banks to prey on loyal customers that trust their existing bank to provide them with a competitive deal," he remarked.

Lisa Taylor, analyst at moneyfacts.co.uk, recently said it was "no surprise" that lenders had increased rates following market uncertainty earlier in the month.
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