Competition pushes loan rates down further

A number of lenders across the UK have reduced their personal loan interest rates over the past few months, which has increased affordability when it comes to borrowing in the UK. Most lenders have applied their best rate reductions to loans in the mid-range section, which are generally unsecured loans of between £7500 and £15000.

It has been reported recently that competition in the personal loan sector is resulting in increasingly affordable deals coming onto the market for potential borrowers. The base interest rate in the UK has been standing at just 0.5 percent for twenty two months now, which is the lowest level it has ever been in the history of the Bank of England, which spans well over three centuries.

The increasing competition means that lenders are continually trying to get one over on one another by reducing personal loan rates to make themselves more popular amongst consumers. This is helping to further drive down the interest rates charged on loans, as when one lender reduces the rates the others tend to follow. One lender, M&S, has now reduced the interest rate on its mid-range personal loan to just 6.9 percent, and this is the first time in around two and a half years that it has dropped below the 7 percent barrier.

According to one industry official restrictions are being eased up to some degree, giving consumers access the more affordable deals on the market. He said: ‘At long last, after a period of inactivity, we are starting to see the whole personal loan market starting to open up. Many lenders are beginning to open their books to more consumers and we are seeing more competitive deals, even for loans below £7,500.’

Tags: rate, competition, rate reductions, best rate reductions, drive, lenders, Affordability, section

‘Contaminated fuel’ affects thousands

Thousands of motorists up and down the UK have been experiencing difficulties with their cars as fears grow that a contaminated batch of fuel has been sent out to the country’s forecourts.

Many drivers have reported problems such as their cars misfiring and completely cutting out a short while after refuelling.

An investigation has been launched to determine whether or not this is down to contaminated fuel as the scale of the problem appears to indicate that it is.

However, tests have been carried out on fuel provided by some of the country’s leading petrol stations, such as Tesco and Morrisons, and the results have proved inconclusive.

“Having received a limited number of enquiries further tests were carried out. These found no contamination and confirmed our unleaded petrol met the required standards,” a spokesperson for Morrisons commented.

Most motorists who have experienced problems have found that the trouble is occurring with their oxygen sensors and this is also adding to the belief that it is a result of contaminated fuel.

Drivers are now being forced to have repair work carried out on their vehicles and some insurance firms are promising that if the problems are a result of contaminated fuel, they will be covered.

“If any of our motor policyholders have experienced a mechanical breakdown which is proved to have been caused by contaminated petrol, we will honour their claim under the accidental damage section of their policies,” said John O’Roarke from Liverpool Victoria General Insurance.

Tags: Fuels, mechanical breakdown, repair work, affects thousands, required standards, section, trouble, Economy of the United Kingdom