According to recent reports in the
financial services news,
personal loan rates are finally falling, good news for
consumers looking for a
personal loan for
car finance .
The financial analyst Moneyfacts.co.uk made it clear that
personal loans were now becoming cheaper. Esther James, a
finance analyst with the site, reportedly said: For most
of 2007 we reported rising
loan rates, with the demise of sub six percent personal
loans and the market finally settling at the end of the year
with the best deals around 6.5% to 7%. But as 2008 starts, there is
good news for
borrowers as
rates begin to fall.
The site pointed to a January trend in which
lenders slash their rates. James reportedly continued:
Only 14 days into January, and five lenders have reduced
rates by as much as 3%. With
NatWest and
Royal Bank of Scotland implementing a cut for existing customer
loans just before the New Year. It’s the season of
debt consolidation, so perhaps these
lenders are looking to maximise their opportunities within this
limited window. The drop could be a seasonal fluctuation or a
limited marketing drive rather than the start of a more widespread
trend, but only time will tell.
Loan rates don’t typically move in line with
base rate, and are certainly not proportional to the 0.25%
bank base rate change.
Car finance experts advise borrowers to shop around and
compare personal loan rates before committing to dealer finance
.
