Personal loan rates ‘increased over past month’

Eight lenders have increased their unsecured personal loans rates over the past three weeks, new research has found.

The study from uSwitch also showed that the number of such loans available fell from 56 to 52 during this period.

Black Horse hiked rates by nine per cent and the Bank of Ireland by 1.8 per cent.

Lloyds TSB, Bradford & Bingley, Barclaycard, Asda, Sainsbury’s Finance and Marks & Spencer also increased charges, uSwitch revealed.

Personal finance manager Louise Bond remarked: “As the news agenda overflows with the global financial meltdown, a plethora of loan rate increases have been implemented.”

It could be bad news for those that may be seeking debt consolidation.

Conversely, high interest rates can mean positive news for savers – the Fair Investment Company has advised people that it would be prudent in today’s climate to spread money across several high-interest savings accounts.

By Jamie Price