Mainstream Lender Unsecured Loan Rates Rise

Unsecured Personal Loans

Unsecured personal loan interest rates have risen by up to 1.2% for three unsecured loan providers. This amounts to an extra £322 in interest payments for a loan of £10,000.

This rise in borrowing rate has come at a difficult time as consumers struggle with their debt, making debt consolidation more expensive with some providers.

The three mainstream providers, Alliance and Leicester, Egg and Marks and Spencers Money, raised their rates as of 1st September.

The personal loans market has declined over the last year with just 36 loan products available at this time compared to the 57 that were available at the same time last year.

Despite the historically low base rate set by the Bank of England the drop in loan products available and the slight rise in loan rates is putting pressure on consumers looking to consolidate their debt.

Personal loan providers are currently tending to offer lower rates to existing customers with a proven credit record to reduce their risk whilst offering a higher rate to new customers.

Last year 1.3 million consumers utilised unsecured personal loans to consolidate their debt, in the current climate, with rejection also running high, it is feasible to assume that the figures this year will be much less.

If you are considering consolidating your debt then the independent less mainstream lender is an option. Without the concerns of a high street brand to scupper their lending, such as current customer bad debts, high street branches to maintain and thousands of staff to support the independent lender can afford to undercut the mainstream lenders and generally move quicker in a changing market.

You can search 90%+ of the UK unsecured personal loan market for the most current and best deal for you. Complete the quick and easy application form here now – quick unsecured loan.

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