{"id":43584,"date":"2023-10-26T16:58:56","date_gmt":"2023-10-26T16:58:56","guid":{"rendered":"https:\/\/cabanesetcompagnie.com\/?p=43584"},"modified":"2023-10-26T16:58:56","modified_gmt":"2023-10-26T16:58:56","slug":"blow-for-borrowers-as-interest-rate-on-loan-repayments-double","status":"publish","type":"post","link":"https:\/\/cabanesetcompagnie.com\/world-news\/blow-for-borrowers-as-interest-rate-on-loan-repayments-double\/","title":{"rendered":"Blow for borrowers as interest rate on loan repayments double"},"content":{"rendered":"

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Interest rates on loan payments have doubled over the past two years, according to new research.<\/p>\n

Analysis from Totally Money highlights the ongoing issue of soaring interest on loans during the cost of living crisis.<\/p>\n

As inflation has hiked the prices of goods and services, more households are turning to credit to make ends meet.<\/p>\n

To mitigate the damage caused by inflation on the economy, the Bank of England has hiked the base rate numerous times in the last year to 5.25 percent.<\/p>\n

One of the consequences of this is that the interest rate for borrowers has risen substantially over the period.<\/p>\n

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The credit experts’ research revealed the interest rates on best buy loans for \u00a33,000, \u00a35,000 and \u00a310,000 have all doubled.<\/p>\n

Totally Money has found the average cost of a market-leading \u00a33,000 loan has increased by 3.18 percentage points.<\/p>\n

This means that borrowers will have to pay an additional \u00a3145 over the space of 36 months as a result.<\/p>\n

On top of this, interest rate hikes to some of the best \u00a35,000 loans have led to an extra \u00a3308.88 jump in interest rate charges.<\/p>\n

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For these loans, the average APR has more than doubled in the last 48 months from 3.30 percent to 7.30 percent.<\/p>\n

Customers of lenders are now 21 percent less likely to be eligible for a loan in light of this, according to Totally Money.<\/p>\n

Furthermore, the Bank of England has predicted an increase in both the demand for unsecured loans and the number of defaults, between October and December this year.<\/p>\n

Andrew Hagger, a personal finance expert at Moneycomms.co.uk, emphasised the day-to-day reality for borrowers straddled with these soaring rates.<\/p>\n