The cost of unsecured loans on the rise
10/12/08
Unsecured loans seem to be costing more despite the recent base rate cut. Following the Bank of England’s Monetary Policy Committees base rate reduction of 1% many providers of unsecured loans have looked at their positions and increased their rates.
Loan providers such as Lombard Direct and AA Loans have hiked the loan rates for a typical unsecured loan for around £7.5k.
In comparison, mortgage providers Lloyds TSB have already assured existing customers that they will be passing on the 1% to variable and tracker rates. Many lenders have recently followed suit due to the pressures on lenders.
Many industry specialists are now voicing concerns at the government to take control of the situation that lenders are despite a 57 year low base rate still increasing the costs associated with loans.
