Loans market 'mirroring' the mortgage market
Tuesday May 20th 2008
An industry figure has claimed that current conditions in the market for unsecured loans are "mirroring" those in the mortgage sector.New research from MoneyExpert has revealed that the average interest rate on loans of £5,000 and £7,500 has increased by one per cent over the last six months, despite three Bank of England (BoE) base rate cuts.
Consumers looking to borrow £5,000 will be faced with interest rates of around 10.16 per cent, while in November last year the figure was 9.4475 per cent.
Those seeking £7,500 will find the rate at 8.88 per cent, a 0.91 per cent increase since November.
Sean Gardner, founder of the comparison site, said that good deals are still available to credit-worthy customers.
"The unsecured loans market is almost mirroring the mortgage market where the issue is not so much rates but availability - whether or not lenders will let you have the cash," he said.