It might sound strange but borrowing a little extra can actually mean you save extra. 14 lenders have increased their rates over the last month on loans below a certain amount. One leading provider has recently increased their rates from 5% to 12.9% on loans less than £4,950. This means if a customer was to borrow £4,950 their monthly outgoing would be £165 (£5,940 a year), however if they were to borrow an extra £50 the rate would drop and they would only be paying £156 a month which would equate to a £324 saving over the year.
Lenders are always looking for ways to reduce the risk of their customers failing to meet their monthly repayments and they also want customers to borrow more. This means banks increase the rates on amounts below a certain amount to encourage their customers to borrow more.
Rates on loans continue to rise and customers are finding the purse strings getting tighter and tighter. Some customers try and consolidate their debts into one monthly sum and this can help customers save some money.
There are different types of loans available too and each one has its advantages and disadvantages. The two main types are secured and unsecured loans, if you are looking for a low risk loan then unsecured loans are the best option but these often carry high rates of interest. Secured loans have lower interest rates but carry high risk as these types of loans are often secured against your house and failure to meet repayments can result in you losing it.
To find the most comprehensive deals on all kinds of loans including personal loans, home loans and secured loans search online and compare the leading providers and all the deals they offer. Consider your options when choosing a loan, the amount and type of loan you need will dictate the interest level so make sure you analyse your current circumstances to know exactly what you need.
With rates on
loans continuing to increase, find out the interest on certain amounts to ensure you find the best rates. While secured loans offer the best rates,
unsecured loans don’t carry the same risks. Find the best deals on
personal loans and other types online and compare the best deals.
