Loan rates continue to increase

According to Moneyfacts.co.uk, the independent financial website, the last 12 months has seen a vast amount of rate increases and this has steadily been sifting through into the personal loan market.

In just 2 weeks, 18 lenders have increased loan rates by as much as 4%. Generally, the rise has affected larger loans, typically over £5,000. These rate increases reflect the way that rising bad debts and increased interest rates are hammering the personal loan market.

Moneyfacts.co.uk advises that those looking for a loan should shop around to get the best deal. Rates are still lower for bigger loans, particularly in comparison to mortgage lenders standard variable rates.

Moneyfacts.co.uk added that obtaining the best deal for your situation is prudent. Many rates quoted are typical, so you may be offered a higher rate. Choosing deferred repayments at the start of the loan may sound appealing but all you are doing is lengthening the term of the loan and increasing your interest bill.