A reduction in the national rate of interest has done little to spur providers into offering cheap loans as part of their product range.
One of the UK’s best known financial comparison sites has recently conducted a thorough search of loans market (prices) backdated to the start of the year, and has found that the average APR tagged to a typical loan plan has rose by more than 1% since Jan 08.
For some borrowers, a rise in typical loan rates will be disheartening; particularly for those people who are used to or who are planning to use a cheap loan to consolidate their collective debts in the coming weeks or months.
A spokesperson for the site commented that huge numbers of Brits source loans to consolidate their debts on a monthly basis and the lack of available cheap credit could prove to be significantly burdensome for some people.
In related news, analysts expect that the MPC will further reduce the rate of national interest throughout the course of the year.
