Good loan deals 'still available'

Britons may still be able to access competitive personal loan deals, one writer claims, despite interest rates rising over the past two years.

Although interest rates attached to personal loans have increased over recent years, borrowers should still find they are able to access good deals.

So claims Jane Baker of lovemoney.com who notes that those seeking out loans at present will find the typical rate of interest attached on a three-year £5,000 loan is often above the 12 per cent mark.

This compares to the 6.5 per cent available at the start of 2008, as lenders have become "more risk-averse" while the economic crisis has rumbled on.

But she states that "despite rates climbing across the board, some competitive deals remain".

To obtain these rates consumers often have to be an existing loan or current account customer with a lender, Ms Baker points out.

Indeed, Halifax recently revealed details of its Rewards scheme, where those in possession of its Ultimate Reward Current Account will be able to benefit from more competitive offers on savings accounts and other monetary products.

By Kate Guthrie