Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
S&P Stock Market Trend Forecast to Dec 2024 - 16th Apr 24
No Deposit Bonuses: Boost Your Finances - 16th Apr 24
Global Warming ClImate Change Mega Death Trend - 8th Apr 24
Gold Is Rallying Again, But Silver Could Get REALLY Interesting - 8th Apr 24
Media Elite Belittle Inflation Struggles of Ordinary Americans - 8th Apr 24
Profit from the Roaring AI 2020's Tech Stocks Economic Boom - 8th Apr 24
Stock Market Election Year Five Nights at Freddy's - 7th Apr 24
It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- 7th Apr 24
AI Revolution and NVDA: Why Tough Going May Be Ahead - 7th Apr 24
Hidden cost of US homeownership just saw its biggest spike in 5 years - 7th Apr 24
What Happens To Gold Price If The Fed Doesn’t Cut Rates? - 7th Apr 24
The Fed is becoming increasingly divided on interest rates - 7th Apr 24
The Evils of Paper Money Have no End - 7th Apr 24
Stock Market Presidential Election Cycle Seasonal Trend Analysis - 3rd Apr 24
Stock Market Presidential Election Cycle Seasonal Trend - 2nd Apr 24
Dow Stock Market Annual Percent Change Analysis 2024 - 2nd Apr 24
Bitcoin S&P Pattern - 31st Mar 24
S&P Stock Market Correlating Seasonal Swings - 31st Mar 24
Here's a Dirty Little Secret: Federal Reserve Monetary Policy Is Still Loose - 31st Mar 24
Tandem Chairman Paul Pester on Fintech, AI, and the Future of Banking in the UK - 31st Mar 24
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bailed Out Banks Continue to Raise Loan Interest Rates

Interest-Rates / Credit Crisis 2009 Oct 26, 2009 - 08:38 AM GMT

By: MoneyFacts


Best Financial Markets Analysis ArticleSince Bank Rate dropped to the historic low level of 0.50% in March, loan rates have continued to increase.

In this period half of all lenders offering personal loans, have upped their rates.

See appendix for details of which lenders have increased rates and by how much

Loan Rate Average Rate March 2009 Average Rate Today
Source: 26.10.09


Michelle Slade, spokesperson at commented:

“Lenders have continued to tighten up their lending criteria, with only customers with blemish free credit records likely to be accepted for a personal loan.

“Those customers that are accepted are having to a pay an increasingly higher price.

“In the last six months alone, £335 has been added to the cost of the average £25,000 personal loan, taking the total increased cost for borrowers on a £25,000 personal loan since the crunch began to a staggering £1,804.

“Unemployment continues to rise and lenders are worried that an increased proportion of their customers will default on their loan.

“It is highly likely that new customers are paying an increased premium to cover the defaulting customers who took out loans the previously more competitive rates.

“The upward trend in rates looks set to continue. Anyone in need of a personal loan, really needs to ensure they do their homework to find the best deal possible or they will be left severely out of pocket.”


Provider Increase Loan Tiers increase applicable too
(Existing Customer Loan)
0.5% to 0.6% £1,000 to £3,000
Bank of Ireland 0.3% to 1.6% £1,000 to £25,000
Barclays Bank
(Barclayloan Plus)
1.0% £7,500 to £25,000
Cheshire BS 1.0% to 2.0% £2,000 to £25,000
Cumberland BS 1.0% £15,000 to £25,000
Furness BS 1.0% £15,000 to £25,000
Lloyds TSB
0.6% to 4.0% £1,000 to £25,000
NatWest 0.5% to 4.0% £5,000 to £25,000
Norwich & Peterborough BS 1.7% £10,000 to £25,000
Royal Bank of Scotland 0.5% to 4.0% £5,000 to £25,000
Smile 1.0% £15,000 to £25,000
Stroud & Swindon BS 1.0% £15,000 to £25,000
The Co-operative Bank 1.0% £15,000 to £25,000
Ulster Bank 0.5% £20,000 to £25,000 0.2% £5,000 to £25,000
Source: 26.10.09 - The Money Search Engine is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in