Barclays have cut their personal loan rates on many of their top products. This is an unexpected decision, particularly following recent increases in loan rates by other lenders . Personal loans are often used for car finance purposes, and many experts approve this type of vehicle finance as the cheapest on the market.

Barclays have cut their rates from a typical level of 7.4 per cent APR, to 6.8 per cent. This represents a slip of 0.6 per cent on their Barclayloan Plus product. The bank has reported a strong balance sheet, with the ability to finance more personal loans .

Many lenders, banks and building societies have recently up their interest rates in recent weeks. This type of rate rise, according to experts, is a reflection of the uncertainty of the current global financial market.

Many UK motor finance customers choose uncompetitive interest rates from dealers. Experts advise shopping around for the cheapest personal loans to finance a new or used vehicle .