Recent UK figures indicate that personal loan interest rates are way up on one year ago, despite base interest rate being at the same level. The largest level of interest rate increase has been on small-scale personal loan applications, of between £1000-£3000.
The increases are substantial, industry experts say, with around 4% higher rates than one year ago for loans around £2000-£3000. Rates have been climbing for several months, with increases of over 1.5% in the last few months.
For larger personal loans, costs are also up, although not to the same degree as small-scale borrowing. Like all financial services products, the cost of credit is climbing, and industry experts see this situation as ongoing and unlikely to end any time soon.
Banks and other lenders are attempting to make back money paid on higher inter-bank lending rates. As well as being more expensive, lenders are also more selective about who they will lend to and at what terms.
Personal loans becoming more pricey
Personal loans becoming more pricey
Wed, 02 Apr 2008
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