Rates of interest attached to unsecured personal loans are continuing to increase throughout the UK, according to figures from Moneyfacts.
The financial comparison firm describes rates on unsecured loans as having “taken a battering”, noting that nine money lenders have upped their repayment demands on new products this week.
According to the company, interest rates on unsecured personal loans have been rising for the past nine months in the UK and it is becoming ever-more important to avoid debt management disaster by assessing all options carefully before borrowing.
“With increasing uncertainty in the financial markets, rising levels of bad debt and a year of interest rate rises putting pressure on our disposable incomes, its comes as no surprise to see lenders increasing their lending margins,” said Moneyfacts analyst Lisa Taylor.
“Only four months ago sub six per cent rates were available, whereas today you would be hard pushed to get your hands on a rate of less than 6.9 per cent.”
The base rate of interest in the UK has been increased five times since August of last year and currently stands at a six-year high of 5.75 per cent.