28 August 2008
Personal loans could become more expensive following the news that two major lenders have increased their rates, uSwitch.com has warned. Moneyback Bank and Alliance and Leicester have both increased their unsecured personal loan rates by up to 1.1% APR. According to uSwitch.com, other providers could follow suit and put up their rates rapidly. Simeon Linstead, Head of Personal Finance at the independent price comparison and switching service, said consumers who are able to secure personal loans can already expect to pay £1.2 billion more in interest than they did this time last year. With this in mind, it is "more important now than ever" that borrowers shop around in order to find the most competitive offers. "The remaining best buy deals may not be around for much longer so consumers should act now while they can still get some pretty good deals," he remarked. According to research from uSwitch.com, the average rate on personal loans of £8,000 over four years now stands at 7.4% APR.
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