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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. (more…)