Consumers seeking a cheap unsecured loan may have awhile to wait as more lenders announced today that they would be raising their rates yet again. Although many have said that cheap unsecured loans are impossible to get right now, they are still available, just in much smaller numbers and usually only to those with perfect credit. This may change however as banks react to the crisis by continually raising their rates and tightening restrictions on cheap unsecured loans.Michelle Slade of Money-facts.co.uk said: “Since the beginning of the year, more than half of lenders offering personal loans have made changes to their rates. NatWest has increased rates on the largest loans by 1.5 per cent, adding £1,015.20 to the total cost, and Black Horse has increased rates for those looking for smaller loans by as much as 11 per cent, adding £52.68 in additional interest over a year.”Abbey said interest-only borrowers with “a proven repayment vehicle in place” would be able to borrow up to 75% of a property’s value, down from 85%. Those who cannot produce evidence of a repayment vehicle will be limited to 50%. “This reduces the risk to both the customer and to Abbey, and is prudent given ongoing market conditions,” a bank spokesman said.
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