You are here: Home - Credit Cards & Loans -

Personal loan market shrinks again

Written by:

Two more personal loan providers have withdrawn from the market, as the credit crunch continues to spread through the financial services industry.

Hanley Economic Building Society and Eskimo Loans (funded by Northern Rock) have withdrawn their personal loan offerings, according to financial comparison site Moneyfacts. This follows GE Money, Leeds Building Society and LV=, who all left the market earlier this month. Moneyfacts estimates this marks almost a 10% reduction in the number of personal loan providers.

Esther James, personal finance analyst at Moneyfacts, said: “Such a large reduction in just the last month is worrying. With no signs of rate rises slowing, it’s a rather unsettled market. The credit crunch is showing its strength in the personal loan market.

“Anyone considering a personal loan might be advised to act sooner rather than later. With less choice, a more cautious lending strategy and the impending decision on payment protection insurance sure to shake up the market, the 2008 loan market could look very different.

“While a handful of competitive deals are still available, rates as high as 10% now feature in the best buy charts. Investing some time in shopping for the best deal could save you a bundle in the longer term.”    



Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Credit squeeze affects Christmas shoppers

Almost a third (30%) of people plan to spend less this Christmas due to recent turmoil in financial markets, according...