Personal loans are ‘more expensive’
The personal loan market has changed since the credit crunch and borrowers are likely to find they are paying more for access to extra cash, it has been suggested.
According to Moneyfacts, loan rates have increased by 1.7 per cent in the past 12 months and many changes have been made to the products that are available to borrowers.
Head of personal finance at Moneyfacts.co.uk Samantha Owens stated that borrowers agreeing a £5,000 loan will pay £386 more for the privilege this year then they would have done 12 months ago.
"In the majority of cases, these have been increases across the board, with lenders combining large one off rate increases with gradual small rises the overall effect does not favour consumers looking for extra borrowing," she said.
Yesterday, Scottish Widows noted that many parents are lending money to their adult children to help them with their debts.
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