Personal loan rates increase

Posted 2008-04-28

New figures have shown that the interest rates on personal loans have increased, with a number of lenders raising their rates.

Barclaycard, Lombard Direct and NatWest are just a few of the companies who have pushed their rates up in the last two weeks, according to personal finance information provider Moneyfacts.

Michelle Slade, an analyst at Moneyfacts, believes that personal loans are now starting to mimic mortgages in terms of increases in the interest charged.

"Its not only mortgage rates that continue to increase, so too have the rates and monthly repayments on personal loans. Since the beginning of the year more than half of lenders offering personal loans have made changes to their rates," she said.

Ms Slade did note that some providers had "bucked the trend" by reducing their charges, such as Yorkshire Bank.

Recent Bank of England data revealed that the value of personal loans in the UK had fallen by more than 50 per cent in March.

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