Loans market ’shrinking’
The number of companies offering unsecured personal loans has fallen sharply in the past month, it emerged today.
Figures published by personal finance website Moneyfacts.co.uk showed that ten per cent of lenders have withdrawn all their unsecured personal loan products since the start of November, as the credit crunch continues to make its impact.
Esther James, the website's personal finance analyst, described the trend as worrying and suggested that as lenders still in the market are continuing to increase interest rates, anyone who needs a loan should act now.
There are still some competitive deals available but rates as high as ten per cent now feature in the unsecured personal loan best-buy charts, she continued.
Ms James added: "Investing some time in shopping for the best deal could save you a bundle in the longer term."
Another personal finance website, MoneyExpert.com, recently published a report that showed the average rate available on an unsecured personal loan of £7,500 is 1.48 per cent lower than on a £5,000 loan.
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