/24-7PressRelease/ - LONDON, UK, March 03, 2007 - Due to several hikes in the interest rates since mid last year by the Bank of England, financial experts are anticipating that personal loans interest rates can soon become double digit figures, implying that lenders would struggle to make profits on personal lending.
Interest rates experienced a hike by a quarter of a percent in August and November last year. Again a quarter of a percent increased in January this year making it 5.25%. A further rise is expected around March - April.
Lenders get most of their profits from the PPI (payment protection insurance). But financial authorities are chiding many lenders for the profits on PPI products that are usually sold with personal loans like car loans.
Due to both these factors, increase in interest rates and decrease in sale of PPI, the financial experts predict a sharp increase of around ten percent in interest rates on many personal loans by year end.
A research shows: on a loan of 5,000 over three years, few lenders offer rates below 6%. Around 40% of the market charges in excess of 8% and some over 10%. Therefore people who wish to avail car loans or other loans have to look for the best deal as there can be a difference of 14.8%.
For more information on the news that is the subject of this press release (or for a copy, demo, or sample) contact Webmaster or visit http://www.ecar-loans.co.uk/
---
Press release service and press release distribution provided by http://www.24-7pressrelease.com# # #
- bad, car, cheap, credit, loan, loans, low, new, online, personal, rate, secured, unsecured, used
Read more Press Releases from Joanne Clive:Other Press Release Headlines:
