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Cost of borrowing rockets
28 November 2008
The cost of borrowing continues to rise despite the Bank Of England base rate falling from 5% to 3%. The gap between the average cost of a personal loan and official interest rates has nearly doubled since September.
Borrowers taking out an unsecured loan can expect to pay 8.46%. The new average loan rate is now 5.46% higher than the base rate.
Experts have said that with the current banking climate, the gap in the cost of borrowing compared to the Bank of England base rate is one of the only ways lenders are able to make money.
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