Loan rates are reaching an all-time high, with the gap between the base rate and loan interest figures nearly doubling in the last two months, a price comparison website has stated.
Research by moneysupermarket.com has found that those looking to borrow finance can now expect to pay 8.46 per cent interest on a loan – over a five per cent premium over the base rate.
Head of loans for the website Tim Moss explained that the focus on mortgage payments and savings rates following the base rate cut has resulted in loans being “overlooked”.
And he noted that loans are no longer the solution for those looking to implement a debt consolidation plan in the 2009.
“Loans are not the cheap form of borrowing they once were,” he remarked, adding that Tesco, Asda and Yourpersonalloan have all increased rates by up to 0.3 per cent over the last two weeks.
Growing financial problems are resulting in an increasing number of families relying on two incomes to maintain a decent standard of living, Scottish Widows revealed recently.
By Tom Musk