Why are personal loan interest rates going down? Are banks feeling more optimistic about lending? Will rates continue to go down?
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Barclays, First Direct, HSBC, Marks & Spencer, Sainsbury's Finance, and Tesco Bank, have cut the interest they charge. I may borrow to help with my personal post holiday crash!
poshjosh
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
generally the rates on personal loans dont follow the normal interest rate trends.
loan companies will reduce their rates as a sign that they want to lend more and will therefore be competitive but the rates quoted are always "typical" which means you might see a deal at 6.9% but once your application is processed you might be offered 14.9% because they regard you as a higher risk than the "average" applicant
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loan companies will reduce their rates as a sign that they want to lend more and will therefore be competitive but the rates quoted are always "typical" which means you might see a deal at 6.9% but once your application is processed you might be offered 14.9% because they regard you as a higher risk than the "average" applicant
