Loan Interest Rates up to 36.9%
The credit crunch is hurting the pocket of many Brits as personal loan interest rates continue to rise.
This increase could add hundreds of pounds to monthly repayments, and this news comes at the same time that the cost of fixed-rate mortgages and credit cards continues to rise sharply.
According to uSwitch, the average cost of a Black Horse loan has risen to 36.9% in the past month. Before the increase a borrower could expect to pay £632 on a £2,000 loan over a two year repayment period. But as the interest rate figure has risen by nine points, the same loan today would have an interest figure of almost £860.
There is further bad news for those who are looking for a loan to deal with their debt management issues, as uSwitch also reveal that other lenders have increased their interest rates. Even though there has been a decrease in the Bank of England base rate, a total of eight providers have put up their rates by an average of 7.85%.
Personal Finance Manager, Louise Bond said: ‘Personal loan “best buys” are changing every day which demonstrates just how unpredictable and volatile the current climate really is.’
