Loans getting dearer despite rates going down

Added: (Fri Nov 14 2008)

Pressbox (Press Release) - London (Longdog Finance) November 14, 2008: The economy-friendly steps taken by the Bank of England recently have failed to offer a respite to the loan borrowers.

Direct Line and Mint, both owned by the Royal Bank of Scotland, have raised the headlines rates to 13.9 percent from 9.1 percent. This rise in headline rates is applicable for the all the borrowers, who are availing a personal loan in the range of £5,000 and £7,500. The rising interest rates follow the similar increases by almost 8 more loan providers in the month of September.
The lenders are not passing on the interest rates' benefits to the loan borrowers, despite the reduction made by the Bank of England in context of base rate, as per Louise Bond, personal finance manager at comparison website uSwitch.com. Bond also stated that a loan borrower waiting for some relief will have to wait for long as the loan market tendencies are here to stay for some more time. The prospective borrowers must shop around to get the best deal.

In the times of today, a loan borrower with a less than perfect credit history and looking for a loan of £10,000 would now end up paying an interest rate of close to 17-18%. The best loan deals for a borrower would be with yourpersonalloan.co.uk, an online lender and a part of Co-operative Bank or with Moneyback Bank or Lombard Direct, offering a 7.8% rate and even with the AA and Post Office, who are presently offering personal loan deals at 7.9%. However, these loans deal rates are only for a borrower with a perfect credit history.

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