New research has supported the claims of the Financial Services Authority that cheap credit is no longer available. The last year has seen average interest rates for unsecured personal loans up by 4.6 per cent on average, with a particular hike on interest rates on smaller loans . Black Horse have the dubious honour of offering the highest interest rates, at 27.9 per cent.
In terms of the secured loans market, rates have also increased, with the best deal standing at 6.4 per cent, which at 0.5 per cent above the best deal on offer last year, isn’t as bad as some might expect. However, there are many less generous offers available which compare far less favourably to the offers that existed this time last year. Many lenders have pulled out of the market completely, with eight high profile lenders withdrawing from the secured loans market in recent months.
Loan to value ratios have also decreased, with the days of 125 per cent well and truly gone. The generally agreed limit now stands at around 90 per cent.
Research Shows Increase in Personal Loan Rates
Mon, 17 Mar 2008
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