Personal loans get more costly
Rates for personal loans have increased during the last few days
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Wednesday, 03, Oct 2007 10:01
Rates have gone on up on personal loans at a number of money lenders and more hikes are set to follow, according to analysts.
Bradford & Bingley, Derbyshire building society and troubled Northern Rock were among those to boost rates, increasing tariffs by as much as four per cent.
Experts suggest that five recent Bank of England interest-rate rises and the US sub-prime mortgage crisis have combined to force lenders to push their rates upwards.
Lisa Taylor, analyst at Moneyfacts.co.uk, said: "This week loan rates have taken a real battering, with a total of nine providers hiking interest rates on some tiers by up to four per cent.
"The last nine months has seen a steady increase in the rates available for unsecured personal loans, only four months ago sub six per cent rates were available, whereas today you would be hard pushed to get your hands on a rate of less that 6.9 per cent."
She advised customers that alternatives to loans, including zero per cent credit cards, may be better options to obtain money at the current time.