Personal Loans

Michelle Slade, analyst at Moneyfacts.co.uk, comments "It's not only mortgage rates that continue to increase, so too have the rates and monthly repayments on personal loans.

Banks, building societies and financial services providers have hiked personal loan interest rates in the first three months of 2008 despite a Bank of England base rate cut, according to MoneyExpert.com.

M&S Money is offering a cashback reward to customers who take out a personal loan between 1st April and 3rd June 2008.

Not only have personal loan rates increased by an average of 1.7% over the past year, lenders have also made some significant changes to the way that they offer these products.

Just two weeks ago the FSA suggested that the days of cheap credit were over. The latest Moneyfacts.co.uk research into the cost of unsecured personal loans underlines that this is certainly the case.

As thousands of women look to take advantage of this Leap Year and propose to their partners, Sainsbury’s Finance estimates that as many as 123,500 personal loans worth an estimated £1.16 billion will be taken out during 2008 to help pay for weddings.

When it comes to sticking to our New Years' Resolutions, as far as personal finances are concerned, we're determined to stay on track, according to research by Halifax Unsecured Personal Loans.

Esther James, personal finance analyst at Moneyfacts.co.uk, comments: “For most of 2007 we reported rising loan rates, with the demise of sub six percent personal loans and the market finally settling at the end of the year with the best deals around 6.5% to 7%.

Consumers could save £15 billion in interest by consolidating all their unsecured debts (credit cards, overdrafts and unsecured loans) into one low cost unsecured personal loan, according to research from uSwitch.com.

Paying off costly store cards, booking a long-overdue holiday or buying the car of your dreams can now be done in a matter of hours after Alliance & Leicester became the first UK bank to offer same day funds for unsecured loans to both new and existing customers.

Sainsbury’s Bank has bucked the trend and cut its personal loan rate. From 18th December, online applications for Sainsbury’s Loans of £7,000 or more (up to £25,000) will be cut to 6.5% APR typical from 6.9% APR typical.

For the first time in the UK, Zopa Listings allows individual borrowers to post their own specific loan requirements and circumstances for individual lenders to review and then bid against.

When it comes to getting a loan online, Monday afternoons are the most popular time to apply, according to research by Halifax Unsecured Personal Loans.

Commenting on positive moves in the loans market, Tim Moss, head of loans at moneysupermarket.com, said: “With several loan rates on the rise, it’s positive to see providers such as Barclays and Co-op Bank bucking the trend.

Barclays has taken advantage of its strong position as a major deposit taker and is cutting its personal loan rates across its book to offer some of the most competitive rates on the market.

Lisa Taylor, analyst at Moneyfacts.co.uk, comments: “This week loan rates have taken a real battering, with a total of nine providers hiking interest rates on some tiers by up to 4%.

Nearly three fifths of parents (57%) said their children either have, or will need to take out a Student Loan to fund their university education, according to research from Halifax Unsecured Personal Loans.

Alliance & Leicester is to offer the best personal loan rate in the UK at only 6.3% APR, making it available to existing Premier or Premier Direct customers and new customers at Alliance & Leicester.

The majority of people who take out a personal loan to consolidate existing debts go on to build up more debt and struggle with the consequences.

It’s not just the kids who are heading back to school this September. Latest research from Abbey Loans finds that over ten million (22 per cent) British adults plan to undertake an educational course outside of their current job in the next twelve months.

Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk, comments: “With just over a week to go before the new 57 plates will be hitting our roads, many motorists will be searching garages up and down the country for their new cars.

The 405,000 Brits buying a new car next month could waste a collective £140 million in excess interest payments if they don’t choose the cheapest way to finance a new car.

Barclays has launched a new personal loan package designed specifically for motorists borrowing money for a car.

Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk, comments: “With the average adult owing around £8,000 in unsecured debt, demand for personal loans may still be high.

UK motorists are set to waste over £175 million by signing up to car showroom finance deals when they buy their new ‘57’ registration cars on 1st September, reveals uSwitch.com, the independent price comparison and switching service.

David Kuo, Head of Personal Finance at Fool.co.uk, says: “Today’s news that the number of personal insolvencies in the second quarter has risen 4% to 26,956 from a year ago is a timely reminder that none of us can afford to be complacent as long as we owe money.

Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk, comments: “This past year has seen a raft of rate increases and this has gradually been filtering through into the personal loan market. In just the last 14 days eighteen lenders have increased loan rates by as much as 4%.

Lisa Taylor, analyst at Moneyfacts.co.uk, comments: “Although not directly linked to base rate, a trend has emerged that loan rates are being tweaked quite quickly following base rate rises.

Zopa lenders with money waiting to be lent out to borrowers enjoyed the full benefit of the Bank of England’s base rate rise from midnight last night.

The interest rate rise announced yesterday and PwC estimates that as much as a fifth of all UK household disposable income now goes to pay interest on borrowings and that levels of debt are rising faster than the growth in earnings.

Michelle Slade, Analyst at Moneyfacts.co.uk, comments: “The announcement from Sainsbury’s Bank to reduce its loan rates to 6.50% bucks the current trend of rising rates we have been witnessing.

Sainsbury’s Bank, has cut its loan rates for any online applications of £7,500 or more (up to £25,000) to 6.5% APR typical. This is affective immediately.

Paying for a vehicle - whether it’s cars, bikes or caravans - is the most popular reason to borrow, new research from Alliance & Leicester Personal Loans shows.

Michelle Slade, Personal Finance Analyst at Moneyfacts.co.uk, comments: “With the disappearance of sub six percentage loans, rates continue to get a battering. This week alone, five providers have increased rates by as much as 1%. Even best buy loan rates, such as Moneyback Bank are rising in line with the market.

Nemo Personal Finance is launching a brand new loyalty scheme, Quarterback, which gives its secured loan customers a quarter of their interest back after ten years.

Customers have a realistic attitude to borrowing and only do so when they need to.

Michelle Slade, Personal Finance Analyst at Moneyfacts.co.uk, comments: “With rising bad debts, interest rates and economic instability, it is no surprise that rates have been increasing. This week saw the final sub six percent loan vanish: a 5.9% from Masterloan.

Zopa lenders with money waiting to be lent out to borrowers will enjoy the full benefit of the Bank of England’s base rate rise as of midnight tonight.

Fool.co.uk urges consumers who take out consolidation loans to resist the temptation of running up further debt.

Bank of Scotland is offering an unsecured personal loan with a best buy rate of just 6.1% APR (typical) via moneysupermarket.com.

Around 400,000 car purchase transactions are likely to take place in March with UK motorists eager to be among the first to drive away a new ’07 registered car. However, care should be taken when considering how to fund such a purchase or risk paying heavily, say UK finance experts, Moneyextra.com.

With a ‘green’ Budget expected from Gordon Brown later this month, new research from Alliance & Leicester Personal Loans reveals that motorists are missing out on an opportunity to save the environment through their choice of car.

With effect from Thursday 15 March 2007, the rates on Nationwide Personal Loans will be as follows:

Zopa and its members celebrate two years of pioneering a better way to do money with a people-powered alternative to the banks.

Michelle Slade, personal finance analyst at moneyfacts.co.uk comments: “Exactly one month ago, moneyfacts.co.uk reported that sub six percent loans were becoming an endangered species. Today, such loans are close to becoming extinct with only one loan provider to offer a sub six percent loan: Masterloan, with 5.9% (typical) on advances between £5K - £15K

Michelle Slade, analyst at moneyfacts.co.uk comments: “As 1st March draws near, keen motorists will be spending the next couple of weeks shopping for their shiny new car, bearing the ‘07’ registration.

More than six million people have taken on more debt in the past three years in a bid to get their borrowing under control, new research from MoneyExpert.com shows. Around one in seven adults have turned to debt consolidation to ease their financial problems with unsecured personal loans the most popular choice.

Now that two of the Big Banks have published last year’s results, Zopa estimates that when results are in from all five, the cost of these profits to each household in the UK on average will be a staggering £475.

The majority of people who take out a loan to consolidate debt then take on more debt and struggle with the consequences.

In the run up to Valentine’s Day this year, Zopa - the world’s first marketplace where people meet to lend and borrow money, set up the opportunity for its borrowers and lenders to send each other Valentine’s messages.

As the UK’s personal debt crisis continues to deepen, Zopa estimates that people in the UK are paying £9.3 billion p.a. too much interest on their unsecured borrowing.

UK motorists are set to waste over £228 million by signing up to car showroom finance deals when they buy their new ‘07’ registration cars on 1st March, reveals uSwitch.com, the independent price comparison and switching website.

Borrowers could end up paying less in repayments for larger loans than for smaller ones with the same lender according to Find.co.uk, UK consumer finance portal.

Michelle Slade, personal finance analyst at moneyfacts.co.uk comments: “At this time of year, when many of us are still recovering from the after effects of our Christmas spending or perhaps trying to commit to our new years resolutions to sort out our finances, personal loan rates are creeping up again.

Borrower apathy and a lack of understanding of Annual Percentage Rates (APRs) could be costing UK borrowers over one quarter of a billion pounds, research from Alliance and Leicester Personal Loans reveals.

Borrowers could end up paying less in repayments for larger loans than for smaller ones with the same lender according to Find.co.uk.

January’s unexpected hike in base rates isn’t being reflected in higher personal loan costs – yet – says Moneyextra.com.

Zopa is the new ‘Best Value Benchmark’ for borrowing for those with a good credit history, having topped the uSwitch and MoneySupermarket best buy loan tables for well over a year.

Nick White, Director of Financial Services at independent price comparison and switching website uSwitch.com comments on two more lenders increasing APR’s and dropping out of the sub-6% personal loan market Northern Rock’s increase from 5.8% APR to 6.1% APR and Liverpool Victoria from 5.9% to 6.4%):

According to HM Revenue & Customs around 900,000 people missed last year's January self-assessment deadline and automatically incurred a £100 fine.

January is one of the busiest months of the year for transferring balances between credit cards and for taking out personal loans for debt consolidation.

Kensington Personal Loans (KPL) has introduced new service initiatives and lower prices across its product range, following a successful pilot in which it is paving the way to regulation of the market through superior customer service and criteria.

Nationwide Building Society has extended its LoanCare cashback offer until 31 January 2007.