Borrowers stung by higher rates

By MoneyhighStreet Staff. Published on September 22, 2008 This post currently has no comments.

Finance
The advent of Gordon Brown''s premiership has seen borrower stung with higher repayments from high street lenders, it has been revealed.

Data from MoneyExpert.com showed that since Mr Brown took over as prime minister, the average APR on a credit card has risen from 18.36 per cent to 19.66 per cent.

Meanwhile, the average cost of a personal loan of £5,000 has risen from 8.6 per cent to 9.4 per cent, while three year fixed mortgages now feature an average repayment rate of 6.51 per cent, compared with 6.12 per cent previously.

Sean Gardner, director of MoneyExpert.com, said: "It has been Armageddon in the financial markets ever since Gordon Brown came to power and it''s not just fat cats that have suffered.

"We''re all feeling the pain as banks have tried to balance their books or face oblivion."

The higher repayments rates come at a time when consumers are facing soaring energy and food bills – prompting experts to forecast a rise in problem debt this year.