Personal loan rate war begins

Friday, 07 January 2011 12:00

A personal loan rate war has broken out in the personal loan market, according to Moneysupermarket.com.

The comparison website found the average rate on the top ten unsecured personal loans at £7,500 has tumbled to 7.89 per cent - the lowest level since November 2008.

However, it also revealed those looking to borrow a smaller amount will need to pay more as the average rate for loans of £3,000 was 15.12 per cent, a 2.19 per cent rise since November 2008.

Tim Moss, head of loans and debt at moneysupermarket.com, said: "With many consumers reviewing their finances in the new year, it is great to see providers creating some healthy competition in the unsecured loans market after a period of relative inactivity."

Use the myfinances.co.uk comparison site to find the best deal on a personal loan.

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