Unsecured personal loan rate cut announced

Tuesday, January 10, 2006

With the news that analysts are predicting a continued interest rate freeze when the Monetary Policy Committee (MPC) meets later this week, Alliance and Leicester has announced some good news for people considering taking out a personal loan.

The bank has announced that the interest rate it imposes on its unsecured personal loan will drop by 0.5 per cent, even if the Bank of England doesn't alter the base rate - good news for those looking to review their finances.

"People with debts on more expensive store cards and credit cards can easily consolidate these into a low rate personal loan," said Claire Alvey, personal loans manager for Alliance and Leicester.

"This will give them the discipline of having to make just one fixed monthly payment, a definite 'end date' for their debt, and a fixed rate of interest for the term of their loan, whilst saving a large amount of money."

The new typical APR of 6.1 per cent is offered at a time when the bank says 22 per cent of Britons are looking to reduce their debts, such as outstanding loan and credit card payments.

The MPC looks set to hold the base rate at 4.5 per cent when it meets on Thursday, according to experts.

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