The average interest rate on an unsecured personal loan is the highest for nine years, according to new research. Moneyfacts found that the average rate on a £5,000 unsecured loan to be repaid over three years is currently 12.4% - up from 12.1% a year ago, and 7.8% in early 2006. In 2001 the average loan rate stood at 12.5% - but the base rate was 6% at the time, compared with just 0.5% today.
A loans expert at Think Money commented: "The problems in the financial industry over the past couple of years have made lenders cautious about offering loans, and in many cases this has meant higher interest rates. "However, there are still good loan deals to be found. We advise anyone considering taking out a loan to speak with an expert loans adviser, who can help them find the best deal for their circumstances."
Source: thinkmoney.com
