Moneyfacts: Loan rates increase again

www.moneynews.co.uk > Debt > Moneyfacts: Loan rates increase again

Moneyfacts: Loan rates increase again

Thu 31st Jul 2008

Finance website Moneyfacts.co.uk has found that 14 lenders increased their loan rates in the last month.

Two lenders, the AA and Tesco Personal Finance, increased their rates twice.

Abbey has increased rates by five per cent to 12.9 per cent on loans under £4,950.

Moneyfacts.co.uk noted that for a loan of £5,000, specific rates mean borrowers would save £324 by borrowing a further £50.

Other lenders to have raised rates include Alliance & Leicester, Bank of Scotland, Barclaycard and Barclays.

But Moneyback Bank has reduced rates by 0.20 per cent.

Moneyfacts.co.uk said many families were considering consolidating existing debts into one loan to reduce monthly outgoings.

But it added that borrowers may not find the reduction as large as they expected.

The findings came as money education charity Credit Action said the government's updates of the Consumer Credit Act over the last few years have brought British law more up to date in the face of increased lending.

Spokesperson Chris Tapp said the government "went a long way" in updating the country's legal framework.

Related News : Debt
	Lessons in financial responsibility 'are important for young people'
	Payday loans 'can lead to significant financial difficulties'
	Brits 'becoming more focused on financial wellbeing'
	Serious debt issues emerging, says expert
	More women 'are facing debt problems'
	Debts 'down slightly in February'
	Brits 'should focus on reducing borrowings'
	Paying down debt is 'better value than saving'
	January a 'gloomy month' for indebted Brits
	Most expensive debts 'must be paid first'

Related News : General finance
	Citizens Advice welfare applauds government
	Confused.com energy defends British Gas
	Bank of Ireland passes stress test
	Tesco Mobile deal 'courts consumers'
	Scottish Widows Investment Partnership notes favourable response
	Customers should fix now, says moneysupermarket.com energy
	Confused.com highlights importance of getting the best deal
	Prices on the rise, says moneysupermarket.com energy
	Bank of Scotland economic report 'suggests transitional phase'
	Clydesdale and Yorkshire Banks security advice issued

Related News : Loans
	Equity releasing 'helping Brits service debts'
	Younger Brits 'interested in equity release'
	Equity release 'can improve quality of life'
	Equity release 'could help older Brits manage their finances'
	Payday loans at Christmas 'could be a bad idea'
	Brits advised against Christmas borrowing
	UK firms 'have lost faith in mainstream lenders'
	Brits 'should consider loans carefully'
	Pay day loans 'can leave borrowers in a tricky situation'
	Unsecured loans growth in UK reported