Providers Hit Loan Customers With 7% Rates

Britons king to take out personal loans are being hit by increasing higher repayment rates, according to figures from a price comparison site.

Research conducted by Moneyfacts, found that loan rates below seven per cent are no longer available after Yourpersonalloan raised repayments from 6.9 per cent to 7.3 per cent.

As a result of the increases, a consumer taking out a personal loan of £10,000 over five years would pay £11,872.

This means that they are paying £472 more over the course of the loan than a customer who had secure the best deal on offer at the time, which offered a rate of 6.1 per cent

Michelle Slade, analyst at Moneyfacts, said: "Just like with mortgages, lenders are struggling to raise funds to lend out to consumers. As a result this increase is being passed on through the APR offered.

"With many lenders offering typical rates or personal pricing, it is likely that many customers are being offered a much higher rate."

Source: http://www.londonstockexchange.com/en-gb/pricesnews/investnews/article.htm?
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