New players top the charts

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. But with rising interest rates and bad debt levels, the last year has seen the rates increasing, so much so that the sub six percent loan is something we are unlikely to witness in the near future.

“This week Your Personal Loan.co.uk, a subsidiary of Co-operative Bank, tops the moneyfacts.co.uk charts with a new proposition offering 6.3% APR on loans between £5K and £25K. The rate offered is not dependent on credit scoring.

“It’s pleasing to see that the loan market remains competitive, and with new players topping the charts, let’s hope it will force other providers to raise their game and lower their rates.”