MoneyExpert.com: Personal loans are becoming scarce

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MoneyExpert.com: Personal loans are becoming scarce

Mon 22nd Dec 2008

Personal loans are becoming harder to find, according to data published recently by MoneyExpert.com.
 
The price comparison site found that the number of personal loans available has almost halved since the start of the year.
 
In January 2008 there were 105 options open to UK customers looking to borrow £5,000, but now there are just 57, a reduction of 46 per cent.
 
According to MoneyExpert.com, the rates of interest customers are expected to pay on loans have also risen.
 
At the start of the year 74 per cent of the loans offered charged interest of ten per cent or less but now this figure is just 31 per cent.
 
Sean Gardner, chief executive of MoneyExpert.com, said: « December is normally a time to give but not, it seems, if you're a loan provider.
 
« Lenders are increasingly thinking twice before offering money that they're much less sure they'll get back. »
 
Recent research by Skipton Building Society revealed that many banks are reducing their rates of interest offered on savings accounts just as they are increasing them on loans.
 
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