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Cheap Personal Loans are becoming increasingly scarce, it has been suggested.

According to Moneyfacts, recent increases to the base rate have led to the average loan carrying interest rates of above six per cent, reports the Independent.

Spokesperson Michelle Slade told the publication: "With rising bad debts and interest rates, plus economic instability, it is no surprise that rates have been increasing."

However, Ms Slade added that borrowers are yet to feel the "full impact" of the Bank of England’s decision to raise the base rate to 5.75 per cent earlier this month.

"We could see the loan rates go up by another 0.2 percentage points in the next month or so," she added suggesting interest rates on Personal Loans could soon surpass the seven per cent mark.

Meanwhile, it has been revealed that the bank considered increasing the base rate by 0.5 per cent to 5.5 which could have put further pressure on borrowers’ ability to make personal loan repayments.

Interfinancial providing you with breaking personal loan news.

source: http://news.1stopfinanceshopuk.biz