Average
personal loan rates have increased by 8.3 per cent over the past two years, according to new findings from Sainsbury's Finance.
The analysis shows the average rate of personal
loan rates from organisations offering loans in both September 2008 and September 2010 increased from 13.2 per cent to 14.3 per cent.
Sainsbury's Finance offered a rate of below 8 per cent APR two years ago (7.7 per cent APR for balances of £7,500) and says it is still offering this today.
The bank's analysis reveals that, of all the
personal loans available two years ago that are still on the market today, 62.5 per cent increased their rates, 25 per cent kept them the same and 12.5 per cent reduced them.
"In the past two years, there has been huge change in the
personal loans market,” said Steven Baillie, Head of Loans, Sainsbury's Finance.
“There are around 40 per cent fewer providers today than there were in September 2008. This reduction has contributed to rates becoming less competitive, meaning it is now more important to shop around for the best deal."
Find out the latest personal loans on offer by receiving our
MoneyMaker newsletter.
