Brits being hit with rocketing loan interest rates
Since the onset of the global credit crunch consumers in the UK have been affected in many ways, with the cost of borrowing rocketing and with availability of finance in all sectors becoming more restricted and difficult. Many consumers have found that whilst they were able to get finance with relative ease a year or so ago, these days getting a loan or other form of finance is not so easy. Also, many have found that the cost of taking out a loan or other form of finance has gone up.
One recent report has suggested that interest rates on some personal loans may have shot up to as much as 36.9%, leaving some borrowers facing repayments that are hundreds of pounds higher than they would otherwise have been. The cost of borrowing on credit cards has also risen sharply recently, leaving many consumers unable to enjoy affordable credit any longer.
Industry officials from one price comparison site claims that personal loans with the Lloyds TSB subsidiary Black Horse have gone up by up to 36.9% recently. This means that customers borrowing even relatively modest sums by way of a loan could find that they are having to pay hundreds of pounds extra in interest alone over the term of the loan. A number of other banks have also been raising their interest rates on personal loans over recent months despite recent Bank of England base rate cuts.
An official from the price comparison site said: ‘Personal loan “best buys” are changing every day which demonstrates just how unpredictable and volatile the current climate really is.’ Consumers are being urged to carefully check and compare personal loan rates to ensure that they get the best deal possible in the current difficult climate.
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