Sub six percent loans vanish

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.

“Moneyfacts.co.uk best buy loans now include rates ranging from 6.1% to 8.9%. Which for the lowest rate deal is a meagre 0.60% above base rate – not much margin for lenders without tagging on Payment Protection Insurance. And we are yet to see the full impact of the latest base rate hike filter through to personal loan rates.”