Personal loan rates increase
28th April 2008
Various UK lenders have increased the rates for their personal loan products, an independent financial website has observed.
Moneyfacts.co.uk has warned borrowers that while rates and monthly repayments for mortgages "continue to increase", so too do those of personal loans.
Analyst Michelle Slade noted that during the last fortnight, Barclaycard, Lombard Direct, the AA NatWest and Tesco Personal Finance have all pushed up their rates.
Ms Slade went on to say that since the start of 2008, over half of personal loan providers have altered their rates. For example, Natwest has added £1,015.20 to the total cost of its largest loans by upping the rate by 1.5 per cent.
However, she also said that it is "not all bad news" for UK borrowers as some lenders have reduced their rates over the last few months.
The analyst explained: "Moneyback Bank, Britannia BS, Yorkshire Bank and Clydesdale Bank have all reduced selected rates since the beginning of the year. In fact anyone looking to take out a £5,000 loan with Yorkshire Bank or Clydesdale Bank will have seen rates reduced by as much as seven per cent."