Personal loan rates falling
Published: 21 January 2010
By MoneyHighStreet Staff Leave a Comment
Updated: 8 February 2010
Personal loan rates are starting to fall with the average loan rate across the top ten deals now at 8.35%, the lowest since the Bank of England cut the base rate to 0.5% last year.
Personal loan rates have become rather detached from the base rate and although the cuts in the base rate last year lead to cuts in mortgage rates and savings rates, the loan rate didn’t respond in the same way.
Many lenders are also now restricting their personal loans to existing current account holders.
Some looking for a loan may consider applying for a home loan, otherwise referred to as a secured loan.
As Tim Moss, head of loans and debt at moneysupermarket.com, said; “Perhaps the tide is turning. It has been a long time since there was much good news to talk about in the loans market, but the recent moves suggest lenders are willing to open their purse strings just a little wider.”