Interest rates on personal loans are continuing to rise, despite recent cuts to the base rate, The Times reports.
It claims that there are now no loan rates under 8%, with the lowest rate on a personal loan currently standing at 8.2%.
The Government – and many borrowers – may have hoped the significant base rate cuts in the past two months would encourage lenders to lower interest rates on personal loans. In fact, the opposite has occurred.
Some economists observe that the LIBOR rate, which is still higher than the base rate, is making the cost of funds for loans more expensive, and that cost is being passed onto borrowers.
A loans expert for Think Money said: “Despite mortgage rates coming down, loan rates have stayed relatively high – although borrowers may hope that situation will change as lenders regain confidence.
“However, it’s still very much possible to get a competitive loan – it can just take a little more searching to find. Speaking to a professional loans adviser can make the process easier.”
Think Money work with a panel of lenders to offer a range of loans. If you are thinking about getting a loan, contact one of our expert loan advisers today.