Posted on Monday, December 01st, 2008 at 3:20pm
The average loan rate is now at 8.46%. The Bank of England base rate now stands at 3%, after a 1.5% cut in November, so the gap between the base rate and the average APR of a loan has almost doubled, in two months.
Borrowers are now paying more than 5% above the base rate now, compared with 2.92% two more, two months ago. It seems loan rates are overlooked following a base rate cut, as the focus lands on mortgages and savings - things that are directly affected by the rate changes.
Loan rates could rise to about 10% in 2009, meaning that they won't be much more competitive than the credit card. Consumers could get a decent deal in the New Year though, when lenders normally try to attract borrowers by offering a helping hand.
Posted on Thursday, October 09th, 2008 at 2:14pm
Figures released by MoneyExpert have found that more and more consumers are struggling with their loan repayments and the increasing number of bills.
The records show that 5m finance payments have been missed or skipped due to lack of funding and consumers who are hoping to repay any sort of loan are suffering with the interest rate rises.
Posted on Friday, July 11th, 2008 at 5:04pm
So, what is Zopa? It stands for Zone of Probable Agreement, and is the world's first person to person online lending exchange.
It now has more than 200,000 members, with total loans topping £23million. And that's all since opening in March 2005.
Amongst other uses, loans from Zopa have funded the purchase of 13 boats, 2000 cars and bikes, 1200 home improvements and 83 weddings.
Zopa lenders have enjoyed an average return of 7,3% and over the last 3 months, a much higher 8.9%. Given that these rates are typically over a fixed three year period (effectively fixed), Zopa lenders are enjoying better returns than banks, with no strings attached.
Despite the credit crunch, the default rate across Zopa loans has remained at 0.02%, believing that this is the lowest of any personal loans in the UK.
Or, you could do it the usual way, and search online for your secured loans or personal loans. Whichever suits!