More loan providers back out of the market

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.

“Leeds BS withdrew at the end of last week, with very competitive PPI charges and low rates on small loans, it left a hole at the top of some of the best buys. And this week GE Money follows suit, withdrawing its competitive rate of 6.9% on loans between £7.5K and £25K.

“Within the secured loans market, SPPL, LoanOne and, with effect from 9 November Money Partners have withdrawn their loan range.

“Rates have been rising gradually for some months, with competition putting increased pressures on margins and bad debts on the increase. But the credit crunch seems to be the final nail in the coffin, as lenders continue to raise rates but more surprisingly withdraw their products all together.

“Anyone looking for a loan would be advised to act sooner rather than later as there seems to be no let up in interest rate rises. If PPI is reformed, which it’s very much in need of, the landscape of competitive rates could become a thing of the past.”