Loan rates continues to creep up for consumer

Despite the recent base rate decrease, in the last week two loan providers have increased their unsecured loan rates by up to 4.8%, hitting consumers even harder in the pocket.

The move follows in the footsteps of eight providers who increased unsecured personal loan rates by as much as 9% over the last four weeks.

Two providers have made the following increases in the last week:

Direct Line:
£5,000 to £7,499 - 13.9% APR (+ 4.8% APR).
£7,500 to £14,999 - 10.9% APR (+ 2.8% APR)
£15,000 to £25,000 - 11.9% APR (+ 3.3% APR).

Mint:
£5,000 to £7,499 - 13.9% APR (+ 4.8% APR).
£7,500 to £10,000 - 10.9% APR (+ 1.8% APR)
£15,000 to £25,000 - 11.9% APR (+ 2.3% APR).

Louise Bond, Personal Finance Manager at uSwitch.com, comments: "We have already seen eight loan providers increase their loan rates over the last four weeks, and now two more have followed suit. Both Direct Line and Mint have increased their loan rates by up to 4.8% APR for customers, making borrowing even more costly.

"The current economic climate is still unpredictable and volatile. The recent decrease from the Bank of England may provide some relief to home owners where the cut is passed on, but consumers looking for a personal loan may not get as good a deal as they expected. However, there are still some good loan deals out there - it's just a case of shopping around to make sure they are not paying over the odds."