How to secure the cheapest loan rate

The base rate may be at an all-time low, but the cost of borrowing hasn’t kept in line. In fact, the cost of borrowing is rising and is set to get even more expensive as the months go on.

Experts predict that the average unsecured loan will have an APR of 10% by the summer.

A year ago, when the base rate was 5.25%, a £7,000 loan typically cost 6.9% – a difference of only 1.65%. Now with base rate just 0.5%, the cheapest rates for the same-size loan cost around 8.5% on average, making the lenders a whopping great margin of 8%. Read more

Five tips to get the loan you want

There are times when you need to get your hands on some extra cash. Whether it’s to cover emergencies, buy a new car or replace furniture, these tips will help you to find your way through the money maze.

1. Do your research. Each lender has a different ideal customer profile so look for the ones that match your circumstances and offer the best value to you. Online price comparison sites can help. Read more

Prepare before you borrow

The financial crisis has made many of us think twice about opening a savings account, let alone taking on any new credit deals. But if you are one of the millions of people who need to borrow in the next few months – perhaps because your current mortgage deal is coming to an end or you have to make a major purchase – it’ll pay you to get your finances in shape now.

There’s no doubt that, when it comes to credit, finding a good deal is nowhere near as easy as it used to be.
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