Loan Rejections Increase By A Third

October 9th, 2007

Those who do get applications approved are having to pay more. Nine banks have increased the cost of taking out personal loans by up to four percentage points.This rise in cost will only affect new customers. Rates have already soared by almost a quarter over the past year, according to the Bank of England. Personal loans account for £66bn of outstanding debt in the UK, more than twice the amount on credit cards and six times that on overdrafts.

Safer savings

PROTECTION for savers increased from Monday after Chancellor Alistair Darling announced the savers’ safety net would be lifted to a guaranteed £35,000 immediately, following the run on Northern Rock last month.

The Financial Services Authority is beginning consulting whether it should go higher still.

Previously savings were guaranteed 100% up to the first £2,000, then 90% of the next £33,000 and nothing thereafter, putting the total safety net at £31,700.

Online ISA

NATWEST has announced a new e-ISA. The internet-only ISA can be opened with just £1 and pays 6% interest which is guaranteed to match or better the Bank of England Base rate until July 2009.

This entry was posted on Tuesday, October 9th, 2007 at 9:12 pm and is filed under Personal Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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