Personal loan bargains still available

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

This month’s interest rate rise took many by surprise but even though mortgage rates are on the rise and some savers are starting to benefit, few personal loan rates have been affected yet. Robin Amlôt, Senior Editor of Moneyextra.com, comments, “Anyone who’s been looking to borrow money shouldn’t have been put off by the base rate rise – only a handful of lenders have raised their unsecured personal loan rates.”

“The rate rise was a close call. The Bank of England’s policy-setters voted 5-4 for the increase with the Governor, Mervyn King, casting the decider. But many analysts reckon the base rate could rise again and very soon at that.

“If you’re looking for a loan - whatever the reason: be it a new car, holiday, home improvements or even debt consolidation - you should consider acting now to lock in an attractive interest rate.”

It is significant that the earliest to raise their personal loan rates have been among the most competitive lenders.

Moneyback Bank has raised its rate to 5.9% APR, up 0.2% - less than the base rate rise – and remains at or near the top of the best buy tables. However, Northern Rock has put its rate up by 0.3% to 6.1% APR while Eskimo Loans has raised its rate for loans of £5,000 or more by 0.6% to 6.9% APR.