/24-7PressRelease/ - LONDON, UK, January 31, 2008 - According to a survey by price comparison service, switching the lender mid-way can result in a lot of savings. However, a majority of people surveyed were not interested in switching the lender for different reasons.
Around 30% of unsecured loan borrowers contacted said that they would not switch lenders because the savings were too small, 20% believed the switching exercise to be too much troublesome, and 6% thought it not possible. The survey shows that despite the negative connotations of the customers over switching lenders, it was clear that they could save money in the process.
The survey from price comparison website uSwitch.com reveals that around one-fourth of lenders allow switchover without any penalty while other two-third charge only one month's interest as penalty. It comes out to only 39 on an 8000 loan taken over five years at an average interest rate of 10.9%. The survey says that even after adjusting the penalty, a borrower would be able to save 140 in interest if he switches mid-way through the term to a best-buy rate of 6.8%.
Mike Naylor, personal finance analyst at the price comparison website, said: "With more base rate decreases predicted over the next 12 months, it's possible that we may see other providers following this example and offer more competitive deals than those available last year. In such a volatile unsecured personal loan market, five years is a long time to stick with the same provider, as rates fluctuate constantly."
For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.loans-bazaar.co.uk/
---
Press release service and press release distribution provided by http://www.24-7pressrelease.com# # #
Read more Press Releases from anaya erika:Other Press Release Headlines:
