Since January, the average rate on a £1,000 unsecured loan has risen by a massive 1.6% - adding £27 to the total cost if repaid over three years.
But those wanting to borrow more than £20,000 will actually have seen rates drop. Three months ago, the average for this amount was 8.1%, and has fallen to 8%.
The cost of an average £2,000 loan has risen by 0.8% since January, and a £3,000 loan has gone up 0.5%.
Julia Harris, from financial data expert Moneyfacts, says: 'The ongoing credit crisis has seen institutions concentrating on getting money in the door and becoming more expensive and selective when lending money out.'
The hike in loan rates is even more marked if you compare the situation today to a year ago - when the Bank of England base rate was the same as now.
The rate on a £1,000 loan has increased by 4.6%, while 3.9% and 3.8% have been added to loans of £2,000 and £3,000 respectively.
Even loans of more than £20,000 have seen hikes of more than 1%.
However, the best borrowers with good credit scores can still get some decent personal loan rates.
For almost six months now, Moneyback Bank, part of Alliance & Leicester, has been riding high at the top of the best-buy tables.
It is offering a typical rate of 6.7% on a £5,000 loan repaid over three years - giving a total cost of £5,520. You can get the same rate if you want to borrow £10,000.
By: Daily Mail
source : http://www.thisismoney.co.uk/credit-and-loans/article.html?in_article_id=433556&in_page_id=9
