Competition is returning to the loan market, according to new figures from price comparison site moneysupermarket.com, which shows that interest rates have dropped.
While the average annual percentage rate (APR) among lenders was 7.34 per cent in March 2008, the same month this year saw the average rate peak at 8.88 per cent.
However, in the past week this has dropped by 0.2 per cent to 8.68 per cent and moneysupermarket.com has interpreted the reduction as a return of competition between lenders.
Tim Moss, head of loans and debt at the website, said: "Lenders will need to continue reducing rates if they want to draw customers back. Let's hope that the rate reductions we've seen recently are just the beginning and that we see more providers looking to attract new customers in the months ahead."
Loan customers wanting to get a better rating were recently offered advice by the price comparison site, including being on the electoral roll, taking billed mobile phones and owning a credit card already.





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