Unsecured lenders increase loan rates for new customers

According to a recent press release from uSwitch.com, since the start of September, several unsecured lenders have increased the rates they charge on loans for new customers.

The increase in rates could see the interest paid on a typical loan of £10,000 jump by £322.

There are currently just 36 personal loans available to consumers, compared with 57 this time last year (a fall of 37%), while the average loan rate has moved from 9.04% to 9.08%.

Louise Bond, personal finance expert at uSwitch.com, said: "As consumers struggle to make ends meet and manage their finances, loan providers are looking to offer the best rates to those whose financial behaviour they can closely inspect - which are their existing customers."

A loans expert for Think Money added: "Despite the rise in interest rates, consumers may still be able to find a good deal if they shop around. A professional loans adviser should be able to help with this."