Loan rates dropping, figures show

Consumers taking out debt in the form of personal loans could be benefiting from lower rates, as typical charges have been found to be dropping.

According to a study by moneysupermarket.com, the average of the top ten deals is 8.35 per cent, compared to 8.42 per cent a year ago.

However, the price comparison site noted that the difference between this figure and the Bank of England’s base rate is at its highest level in five years, with the latter having been maintained at 0.5 per cent since March 2009.

Those with debt problems may see some pressure lifted, with head of loans and debt Tim Moss suggesting that borrowers are likely to get the best deals from banks of which they are already customers.

“It has been a long time since there was much good news to talk about in the loans market, but the recent moves suggest lenders are willing to open their purse strings just a little wider,” he said.

Today, the Bank revealed that it voted unanimously to maintain the base rate at 0.5 per cent at its most recent monthly meeting.

By Andy Mackay