Personal loan interest rates are continuing to increase even though the Bank of England has cut interest rates 3 times in the last 6 months. The fact that personal loans or unsecured loan interest rates have increased by up to 1 per cent is quite staggering. It is now actually cheaper to borrow more money, which is something you could consider if you're application for a loan is accpeted.
I think the average rate for a ?5,000 loan, in the United Kingdom, is now around 10.16 per cent and the average interest rate for a ?7,500 loan, in the UK, has increased by almost 1.00 per cent.
Industry experts estimate that approximately 1.38 million people have had a personal loan application rejected in the last 6 months and this is because lenders have introduced stricter criteria when it comes to approving loans.
The Bank of England really needs to think about how it can restore confidence in the financial markets. This seems especially important when you think that lenders have increased interest rates on personal loans even though the bank of England has done the opposite by cutting interest rates 3 times.
Unsecured personal loans are becomming more and more like mortgages where consumers are finding it difficult to actually get the loan they want, people are not so interested or worried about the interest rates.
If your credit rating is good then you shouldn't have anthing to worry about, you should still be able to access competitive loan deals. In my opinion though, you should always research the market carefully before making any application.
If you borrow more money then you will get more competitive interest rates and this is because loan companies see customers who borrow more money as far better risk than customers who borrow less.
The two golden rules are compare and research the market whatever product you're looking for. If you are unsure then get professional financial advice...
