Personal loans are now coming with hefty levels of interest and it will be hard to find deals anywhere near the all-time low base rate, according to one industry figure.
Pierre Williams, head of research at Moneyexpert.com, was commenting on a recent report by moneysupermarket.com which revealed the average interest rate on personal loans to be around ten per cent for shorter-term deals.
Mr Williams warned that customers should "expect" to pay a high rate of interest on any personal loans they take out, adding "the days of cheap loans are gone".
He explained: "Rates are sky high with many of the banks building in a very healthy margin to insure against defaults, which remain a real possibility with unemployment creeping ever higher."
Andrew Hagger, from Moneynet.co.uk recently told the Independent that more personal loans will be taken out when nearly 60 new registered cars are released at the beginning of next month.
Cheap loans disappear from market, expert warns
Cheap loans disappear from market, expert warns
Thu, 27 Aug 2009
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