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 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
