Thursday 28th of May 2009
Britons continue to be subject to high interest rates on unsecured loans, despite the Bank of England having lowered the base rate.
That is the finding of Sainsbury’s Loans, which revealed that just four lenders currently offer APRs of less than eight per cent.
Consumers could be facing debt problems as a result, with high interest charges extending the length of time it takes to repay unsecured loans.
However, those who are struggling can seek advice on debt management programmes, as lenders may agree to more affordable plans.
According to the Sainsbury’s figures, 42 providers offered products with less than eight per cent interest a year ago.
Since then, the Bank of England’s base rate has dropped from five per cent to 0.5 per cent, but head of loans Steven Baillie noted that the market is in fact now "less competitive".
Last week Defaqto observed that lenders are becoming increasingly cautious about providing loans, with only those who have good credit ratings able to secure competitive rates.
