It's not only mortgage rates that continue to increase, so too have the rates and monthly repayments on personal loans.
In the last two weeks alone we have seen Barclaycard (+0.50%), Lombard Direct (+1.0%), The AA (+0.10%), NatWest (+2.50%) and Tesco Personal Finance (+0.6%) all push selected personal loan rates upwards. On top of this Barclaycard has pulled the one time best buy personal loan product offered through its Masterloan brand.
Since the beginning of the year more than half of lenders offering personal loans have made changes to their personal loan rates. Black Horse has increased personal loan rates for those looking for smaller personal loans by as much as 11.0%, adding £52.68 in additional interest over a year. NatWest has increased personal loan rates on the largest personal loans by 1.5%, adding £1,015.20 to the total cost.
But not all lenders have increased personal loan rates
Thankfully it's not all bad news; some personal loan lenders have in fact bucked the trend and reduced personal loan rates in the last few months. Moneyback Bank, Britannia BS, Yorkshire Bank and Clydesdale Bank have all reduced selected personal loan rates since the beginning of the year. In fact anyone looking to take out a £5000 loan with Yorkshire Bank or Clydesdale Bank will have seen personal loan rates reduced by as much as 7.0%.
What should borrowers be aware of?
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