how to find the best rate
Decide how much you want to borrow and over
what period. Remember that most lenders have tiered rates of
interest so that the more you borrow, the lower the rate of
interest.
That doesn’t mean you should borrow more than
you need – just be aware that by borrowing £5,000, you might pay a
lower rate than if you borrowed £4,900, if the bank has tiered
bands of interest.
When choosing the duration of the loan,
remember that most personal loans carry early repayment charges if
you want to pay the loan off early. So try to choose as short a
loan period as possible
Shopping around for a personal loan has become more difficult as
a growing number of providers now operate ‘personal pricing,’ based
on each applicant's creditworthiness.
This makes shopping around more difficult as advertised rates
will not necessarily be the same as the rate you are
actually able to obtain.
Even so, don't just stick with your current account
provider. Take a look at the Defaqto best buy tables to
see the most competitive quoted rates as a guide to which
lenders are seeking new business.