More lenders bite the dust

Written by renxue January 09, 2008 16:30

Updated figures from financial search engine, Moneyefacts.co.uk, show the unsecured loans market shrinking by a further 10% in November.

Indeed, another two lenders have bitten the dust in the personal loan market this week, with the withdrawal of Hanley Economic BS and Northern Rock funded Eskimo Loans. They join GE Money, Leeds BS and LV= which withdrew earlier this month, marking an almost a 10% reduction in the number of unsecured loan providers.

Esther James of Moneyefacts makes the point that anyone considering a personal loan might be advised to act sooner rather than later. With less choice, a more cautious lending strategy and the impending decision on payment protection insurance sure to shake up the market, the 2008 loan market could look very different.

While a handful of competitive deals are still available, rates as high as 10% now feature in the Moneyfacts.co.uk best buy charts. Investing some time in shopping for the best deal could save you a bundle in the longer term.