25 April 2006
The UK's biggest high street banks are failing to deliver better personal loan rates, despite increased competition from other loan providers, according to uSwitch.com.
The online price comparison firm said that there was now four times as many loan providers offering rates of below 6% APR compared to a year ago, but bigger banks were not following suit with lower rates.
HSBC still has a typical online rate of 11.9%, twice that of other available online deals.
"It still surprises me that the high street banks retain such a large share of the market when they continue to offer some really uncompetitive deals," said Nick White, head of personal finance at the company.
"In today's market, it makes far more sense for borrowers to check out what is available online before they head to the high street for a low-rate loan.
"For anyone considering taking out a personal loan - to consolidate existing expensive debts, to buy a new car or finance a home improvement - now really is a good time to utilise such low rates of interest."
The future may see less good news for consumers however, he suggested.
"While these rates may be sustainable in the short term, in the long run, with an industry crack-down on the selling practices and high costs for payment protection insurance expected, we may see rates starting to creep back up."
Compare personal loans and find the best personal loan for you with the uSwitch.com loans comparison service
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