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Six Percent Personal Loans Halved in Past Year

The number of personal loans providers with a rate below six per cent has halved in the past year, Reuters reports.

According to the news agency, investigations into payment protection insurance have caused banks to increase the interest rate on their cheapest loans, resulting in some passing the six per cent level.

Meanwhile, the trend is expected to continue as Asda states its 5.9 per cent rate is to rise to an unspecified level on February 15th.

There are now four lenders offering rates of less than six per cent, Reuters claimed, with the average interest rate for personal loans now standing at 10.98 per cent from 10.61 per cent a year ago.

Nick White, director of personal finance at price comparison site uSwitch, noted an absence of product announcements in the personal loans market in January.

"The traditional battle for the top slot amongst loan providers hasn’t taken place; instead we have seen more of them drop out of the sub-six per cent market."

Research from Alliance & Leicester recently suggested that Britons are wasting up to £285 million in repayments for non-competitive personal loans.

News Source:
http://www.1stopfinanceshopuk.biz/

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.