- 15
- May
Borrowers are gaining increasing access to competitive personal Loans, it has been suggested.
According to research by moneysupermarket.com, the margin between the base rate and the level of interest on Personal Loans is at its lowest for four years.
The price comparison website reported that the difference between the current interest rate of 5.5 per cent and the interest charged on the most competitive personal loan is 0.4 per cent.
However, in March 2003, there was a gap of 2.95 per cent between the then base rate of 3.75 per cent and the cheapest loan which charged 6.7 per cent.
Head of loans Tim Moss said: "Loans have never been so cheap."
Mr Moss added that as loan rates generally fall following an interest rate increase "the profit margins are narrower then ever for the loans providers and consumers are getting a damned good deal".
However, Stephen Rose, director of the Debt Advice Bureau, warned that borrowers should take the time to read the paperwork that comes with loan applications, to ensure they know the full terms and conditions to their borrowing.
Interfinancial providing you with breaking personal loan news.
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