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Changes in UK unsecured loans, site finds

The personal loans sector in the UK has undergone some changes in recent months, a financial website has claimed.

Analysis from Moneyfacts.co.uk has measured 27 modifications to unsecured loan products across the market so far this year.

In the main, these take the form of increases to repayment rates - meaning that customers are having to shop around more for the best value personal loan deal.

Moneyfacts.co.uk blamed the ongoing credit crunch for the changes - which has seen nervous high street lenders toughening-up their criteria for borrowers.

Commenting, the comparison site's head of personal finance, Samantha Owens, said: "In the majority of cases, these have been increases across the board, with lenders combining large one off rate increases with gradual small rises the overall effect does not favour consumers looking for extra borrowing.

"Lenders are tightening up, ensuring that we only borrow as much as we need, not a penny more."

Personal loans are often used by consumers for consolidating debts - incorporating repayments into a single monthly outgoing.

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