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Personal loan rates 'have risen significantly'
Rates featured on personal loan products have risen dramatically in the past two years, according to new research.
Figures from Defaqto, commissioned by the Independent, revealed that the average annual percentage rate on a £5,000 loan has risen from 9.8 per cent to 13.9 per cent since 2008.
Such findings have emerged despite the Bank of England base rate reaching a low of 0.5 per cent, with the cost of servicing a £5,000 loan on a three-year deal rising to £1,143.
David Black, banking analyst at Defaqto, told the newspaper there is not much appetite for lenders to get involved in unsecured lending.
He added: "Many of the banks are focusing their un- secured lending on existing customers; so to get an unsecured loan or credit card from HSBC or RBS you now have to have a current account with that provider."
Tim Moss, head of loans at Moneysupermarket.com, recently claimed the UK market for loans has changed "beyond all recognition" in the past 12 months or so.