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Rates rising for unsecured loans, research finds

Rates rising for unsecured loans, research finds

Category: Loans

Updated: 31/10/2008
First Published: 20/10/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Britons seeking unsecured loans have found that interest rates are rising, Moneyfacts.co.uk has found.

Analyst at the consumer information site Michelle Slade noted that the lowest rate currently is available is 7.6 per cent, although it only applies to homeowners.

The findings follow Moneyfacts.co.uk's recent report that there are no longer any loans available with an interest rate of less than seven per cent.

And according to Ms Slade, just seven providers now offer a rate less than eight per cent and the number is falling.

She noted that consumers with unsecured loans may find that they can save money by choosing an independent provider for their payment protection insurance (PPI).

"Although not suitable for everyone, PPI does provide peace of mind to some consumers, but it usually works out more than twice as expensive if you opt for it from the provider of your loan," she said.

This week the Financial Services Authority found that some customers had been misled into thinking that PPI was a compulsory purchase alongside unsecured loans.

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