Loan News

Having successfully launched the world’s first peer-to-peer lending service in the UK, Zopa today becomes the first global business, with launches in the USA and Italy.

Esther James, personal finance analyst at Moneyfacts.co.uk comments: “Another two lenders bite the dust in the personal loan market this week, with the withdrawal of Hanley Economic BS and Northern Rock funded Eskimo Loans.

Average rates on unsecured loans of £5,000 are now nearly 9.5 per cent as the credit crunch hits home, new research from MoneyExpert.com reveals. But borrowers who take a £7,500 loan will see average rates drop to 7.97 per cent.

People are facing increasing knockbacks on loans as banks get tougher with their lending criteria.

Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk comments: “Competitive loan rates can still be found, especially if you are borrowing larger sums of money. But as rates continue to rise and lenders begin to withdraw from the market, it could look a very different picture in a few months’ time.

Graduates are facing a hard time with their interest bills at the moment. With student loan rates linked to inflation, this last year has seen rates jump up. Should they be looking for additional borrowing by way of a graduate loan, it’s not good news to see Lloyds TSB and NatWest increase their rates this week.

With conventional lenders increasing the cost of their loans in the wake of the debt crisis, Zopa loans - secured from other people rather than the banks - remain some of the very best deals available anywhere.

ABCUL – the Association of British Credit Unions – has welcomed the Government’s crackdown on loan sharks.

In response to statistics released by Chiltern today showing that one in 16 Britons are officially overindebted, Picture Financial highlights the importance of individuals becoming more engaged with their money management.

Nearly four million Britons are officially overindebted but two-thirds of them are in denial according to research from leading debt management specialist Chiltern.