Interest Rates on UK Loans Lowest in 4 Years

Research performed by a website Moneyfacts revealed that interest rates on a number of loans in the UK are now at their 4-year minimum.

For example, in the very end of last year many lenders, including M&S Money, Sainsbury's and Tesco have cut interest rate on personal loans.

This trend was followed in the new year as well. In January, such banks as Barclays, Tesco, Co-operative, Smile, M&S Money and others have already cut interest rates.

At the moment, the lowest interest rate available on a personal loan is 6%, which compares to 8.4% last year. It was lower only in 2008, before the economic downturn, standing at 5.8%.

Commenting on the findings, Rachel Springall of Moneyfacts, said: "Those looking for a personal loan to consolidate their debts will benefit from this low rate," she said. Customers must shop around for the best deal as loan rates are continuing to fall in this competitive market."

The detailed report is available on the official website of Moneyfacts.