Although low-rate loans are becoming increasingly scarce, prospective borrowers can still access competitively-priced products, it has been suggested.
In research released by MoneyExpert, the typical annual interest on an unsecured loan of 5,000 pounds stands at about 9.44 per cent, with the most expensive and cheapest rates standing at 13 and 6.7 per cent respectively. Meanwhile, just four lenders are offering products with interest of less than seven per cent. According to the price comparison website, the diminishing availability of cheap loans is due to the impact of the credit crunch which has seen a number of financial services providers hike the interest rates attached to their products and become stricter with borrowing criteria in an attempt to make sure that consumers will be able to afford repayments.