In this period half of all lenders offering personal loans, have upped their rates.
Loan Rate - Average Rate March 2009 - Average Rate Today
£1,000 - 19.7% - 19.7%
£5,000 - 12.2% - 12.4%
£10,000 - 9.4% - 9.9%
£25,000 - 9.5% - 10.0%
Source: Moneyfacts.co.uk 26.10.09
Michelle Slade, spokesperson at Moneyfacts.co.uk commented: "Lenders have continued to tighten up their lending criteria, with only customers with blemish free credit records likely to be accepted for a personal loan.
"Those customers that are accepted are having to a pay an increasingly higher price.
"In the last six months alone, £335 has been added to the cost of the average £25,000 personal loan, taking the total increased cost for borrowers on a £25,000 personal loan since the crunch began to a staggering £1,804.
"Unemployment continues to rise and lenders are worried that an increased proportion of their customers will default on their loan.
"It is highly likely that new customers are paying an increased premium to cover the defaulting customers who took out loans the previously more competitive rates.
"The upward trend in rates looks set to continue. Anyone in need of a personal loan, really needs to ensure they do their homework to find the best deal possible or they will be left severely out of pocket."
