Unsecured Loans More Expensive

MoneyExtra.com have revealed that just 4 loan providers offer loans of £5,000 at below 7%, with the number increasing to 7 providers if you are borrowing £7,500.

The recent credit problems have led to lenders becoming tougher on applicants or even pulling out of unsecured lending fully. If you are looking for a loan, you can compare unsecured loans for a variety of purposes.

Lenders seem to be taking the view that there is less risk in lending higher sums of money and are therefore willing to offer the higher amounts with lower rates. But borrowing less becomes more expensive as lenders see these amounts as higher risk and need to recover their lending quickly.