Interest rates continue to fall
Personal loan rates are continuing to come down from their five-year high as competition returns to the market, research indicated.
The average interest rate being charged by the 10 most competitive lenders has fallen on loans for people borrowing £5,000 or more, as banks and building societies regain their appetite to lend, according to website moneysupermarket.com.
But eight out of the top 10 providers with the best rates now employ so-called personal pricing, under which the interest they charge varies according to the borrower's credit rating. However, despite the Bank of England base rate being cut to a record low of 0.5% in March 2009, the average cost of a personal loan has actually been steadily increasing. The rates lenders were charging peaked in April this year, but they have been falling since then for most loan amounts.