Competitive interest rates on personal loans could soon be a “thing of the past”, according to financial comparison firm Moneyfacts.
A range of economic factors have seen money lenders become increasingly cautious in the UK and many of the most attractive deals for credit consumers are being withdrawn from the market altogether, the company suggests.
With this in mind and as millions of Britons attempt to gain control of their debt management, Moneyfacts insists that prospective credit consumers should act fast to access a competitive loan deal.
“If Payment Protection Insurance is reformed, which it’s very much in need of, the landscape of competitive rates could become a thing of the past,” said Lisa Taylor from Moneyfacts.
“Rates have been rising gradually for some months, with competition putting increased pressures on margins and bad debts on the increase.”
The Bank of England recently decided to maintain the cost of borrowing in the UK at its current rate of 5.75 per cent.