Loan costs falling further

By Matthew Plant

We've seen further declines in the cost of personal loans - especially when it comes to larger loans. An article on thisismoney.co.uk provides the details.

The article looks at the deals offered by a couple of major lenders. While a £5,000 loan repaid over three years can come with a rate of 7.8%, the article cites two loan deals of £7,500 that charge just 6% or 6.2% (although the second one's only available to existing customers of that lender).

It also points out that a bank's / building society's existing customers can often access better deals - and they might find they're more likely to be accepted as well, since the lenders are 'likely to view you as less risky'.

Moving on, it reminds readers that banks are still 'relatively' cautious about lending to newcomers - and that there's no guarantee you'll get the headline rate you see on an advert.

The latest figures on 'Lending to Individuals' from the Bank of England were published at the end of last month, showing that people in the UK were carrying £206.6 billion of unsecured debt as 2011 came to a close. £55.8 billion of that total was in the form of credit card debt, while 'other loans and advances' accounted for the remaining £150.8 billion.

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Tags: loans. personal loans, loan, costs, loan costs, Lending to Individuals, Bank of England

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