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
Stock Market Bubble 2025 - 11th Feb 25
Fed Interest Rate Cut Probability - 11th Feb 25
Global Liquidity Prepares to Fire Bull Market Booster Rockets - 11th Feb 25
Stock Market Sentiment Speaks: A Long-Term Bear Market Is Simply Impossible Today - 11th Feb 25
A Stock Market Chart That’s Out of This World - 11th Feb 25
These Are The Banks The Fed Believes Will Fail - 11th Feb 25
S&P 500: Dangerous Fragility Near Record High - 11th Feb 25
Stocks, Bitcoin and Crypto Markets Get High on Donald Trump Pump - 10th Feb 25
Bitcoin Break Out, MSTR Rocket to the Moon! AI Tech Stocks Earnings Season - 10th Feb 25
Liquidity and Inflation - 10th Feb 25
Gold Stocks Valuation Anomaly - 10th Feb 25
Stocks, Bitcoin and Crypto's Under President Donald Pump - 8th Feb 25
Transition to a New Global Monetary System - 8th Feb 25
Betting On Outliers: Yuri Milner and the Art of the Power Law - 8th Feb 25
President Black Swan Slithers into the Year of the Snake, Chaos Rules! - 2nd Feb 25
Trump's Squid Game America, a Year of Black Swans and Bull Market Pumps - 24th Jan 25
Japan Interest Rate Hike - Black Swan Panic Event Incoming? - 23rd Jan 25
It's Five Nights at Freddy's Again! - 12th Jan 25
Squid Game Stock Market 2025 - 5th Jan 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

UK High Street Loan Interest Rates More than 2% Higher Compared to Challengers

Personal_Finance / Debt & Loans Jun 14, 2017 - 03:29 AM GMT

By: MoneyFacts

Personal_Finance

The quarterly Moneyfacts UK Credit Card Trends Treasury Report, which studies the UK personal finance market (Unsecured Personal Loans, Credit Cards and Overdrafts), shows that the gap between unsecured personal loan rates from high street brands and the rest of the market has widened, with high street rates now 2.3% higher on average compared to other providers*.


Given a loan of £5,000 over three years, a borrower would be charged £179 more in interest over the course of the loan based on the average rate of a high street loan versus the average across all other providers.

Specifically, the average rate at the £5,000 tier for high street brands is 8.5%, compared to 6.2% from other providers. The average loan rate across all lenders on the market, meanwhile, stands at 7.2%, down from 7.8% a year ago.

Rachel Springall, Finance Expert at Moneyfacts, said:

“Whilst unsecured personal loans remain competitive overall, there is still a chance that borrowers are paying over the odds by choosing a loan from a high street brand instead of a Best Buy alternative.

“Some consumers may prefer picking a high street brand for a loan because they have an existing relationship, but it is highly likely that a cheaper alternative can be found elsewhere. Loyalty doesn’t always pay, and the only real value that can be had from having a high street loan is the same as with any other loan, namely if it were to offer the most competitive rate.

“There is one exception in the Best Buys, with TSB charging the lowest rate at the £5,000 tier of 3.5%, as well as the lowest rate of 2.8% for higher tiers. All other high street providers charge over 4% for the same loan. It is also worth keeping in mind that not everyone will get the best rates, as they are not guaranteed for each customer.

“It remains the case that lower tier loans are charged more than the representative APR tiers from £7,500 upwards, so borrowers need to remember to compare loans on the exact amount they want to borrow. In addition, for small sums such as £3,000 or less loans can be more expensive, so they may well find it cheaper to use a low-interest credit card instead.”

*Based on the loan tier of £5,000 over three years.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk 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 http://www.MarketOracle.co.uk - 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