Unsecured loan providers increase rates

Published on

uSwitch.com has highlighted the fact that three unsecured personal loan providers have increased their rates by up to 1.2% since the beginning of September.

It says this could cost personal loan customers an extra £322 in interest paid on a typical loan of £10,000.

Marks and Spencer Money has hiked selected rates by 1.2% and Egg has increased the rate on loans between £3,000-£20,000 increased by 1% to 14.9%.

Also, Alliance & Leicester has increased rates of loans of £5,000-£7,499 by 0.1% to 8.9% and for those between £7,500-£15,000 by 0.8% to 8.7%.

There are currently 36 personal loans currently available to consumers, compared to 57 loans that were available this time last year, a drop of 37%. At the same time, the average loan rate has increased from 9.04% to 9.08% in the last year.

Also, the best deals are currently being offered to existing customers rather than new customers.

The average interest rate in the uSwitch Best Buy table for existing customers is currently 7.94% with Nationwide topping the table with its Existing Customer Personal Loan Plan at 7.7%. However, new customers can expect to be hit with an average interest rate for a Best Buy loan of 8.08%, 0.14% higher.

Louise Bond, personal finance commentator at uSwitch.com, said: “As consumers struggle to make ends meet and manage their finances

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...