UK Borrowers Urged to Shop Around for Best Deal

With the Christmas period fast approaching, those considering a personal loan are advised to make sure they shop around to get the best possible deal. Research from Sainsbury’s Finance shows 33% of those taking out personal loans choose to accept the first quote they receive. The research also showed that more than half of borrowers opt for a loan from their current account provider. Of these, 39% did not shop around for a better quote.

As some high street banks charge up to 26.9% APR for a personal loan of £5,000, Sainsbury’s finance suggested that some borrowers could save as much as £ 1,404 by considering other sources of finance. The firm also urged that this problem was a particular problem for older generations, with more than three quarters of those over 65 choosing to borrow from their current account provider.

Steven Baillie, Head of Loans at Sainsbury’s Finance, said: “Given the increase in number and popularity of price comparison websites it’s surprising that so many people still go straight to their high street bank without comparing deals.  There are many deals to be had but you simply won't know how much you can save until you shop around a little. “