More loan providers exit market

Providers continue to exit the personal loans market - the latest being LV= (Liverpool Victoria), which has confirmed it will no longer sell unsecured personal loans, with immediate effect.

Lisa Taylor of financial search engine, Moneyfacts, notes however that competitive loan rates can still be found, especially if you are borrowing larger sums of money. But as rates continue to rise and lenders begin to withdraw from the market, it could look a very different picture in a few months' time.

Leeds BS withdrew at the end of last week. And with competitive PPI charges and low rates on small loans, left a hole at the top of some of the 'best buys'. This week, GE Money has followed suit, withdrawing its 6.9% deal on loans between £7.5K and £25K.

Within the secured loans market, SPPL, LoanOne and, with effect from November 9th Money Partners, have withdrawn their loan range, according to Taylor.

Rates have been rising gradually for some months, with competition putting increased pressures on margins and bad debts on the increase. But the credit crunch seems to be the final nail in the coffin, as lenders continue to raise rates but more surprisingly withdraw their products altogether.

"Anyone looking for a loan would be advised to act sooner rather than later as there seems to be no let up in interest rate rises," says Taylor.