21 October 2008
Rates on unsecured personal loans are continuing to climb, despite a recent 0.5% cut in the base rate by the Bank of England, it has emerged. According to the independent price comparison and switching service uSwitch.com, two lenders have put up their personal loan rates by as much as 4.8% in the last two weeks. This follows similar moves over the last four weeks by eight loan providers, who have increased their rates by up to 9%, hitting consumers who are already struggling with rising living costs, uSwitch.com claims. Louise Bond, Personal Finance Manager at the website, comments: "The recent decrease from the Bank of England may provide some relief to home owners where the cut is passed on, but consumers looking for a personal loan may not get as good a deal as they expected." However, she insisted that there are still some good value deals available on the market and urged consumers to shop around in order to find the most competitive deals. According to the Bank of England's latest credit conditions survey, default rates on personal loans were higher than expected during the third quarter of this year.
© 2008 Adfero Ltd
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