Tuesday 25th April 2006
People willing to shop around for their loans could benefit from significant savings, according to Alliance & Leicester (A&L).
As the loans market becomes increasingly competitive and the level of awareness about personal finance grows, providers are finding that they are having to compete harder for positions in the best buy tables, Claire Alvey, personal loans manager at A&L advises.
"More consumers today will take the time to check the best buy tables and shop around rather than step into their local bank," she said.
"We are certainly starting to see a change in mindset as consumers start to become more savvy and focused on cost," Ms Alvey added.
According to uSwitch, there are currently 13 lenders offering personal loans at six per cent APR or less, a fourfold increase since the same time last year.
USwitch also highlighted the savings that could be made from shopping around; an HSBC loan could cost over £1,000 more in interest than the same loan from Northern Rock or Direct Line.
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