Loan costs continue to fall

Personal loan costs have dropped to a post-credit crunch low after a series of rate cuts in recent weeks.

The cost of the average personal loan continues to fall after reaching a recent high last year, with the rates for loans of between £7,500 and £15,000 at their cheapest since 2007, according to Moneysupermarket.com.

The average of the top ten £7,500 loans is now 6.79 per cent, 1.48 per cent lower than a year ago. The average repayment rate on a £5,000 personal loan has also fallen, although the cost of the typical £3,000 loan is beginning to edge up, reaching 15.15 per cent. The average is 4.55 per cent above the figure four years ago and equates to £701 more in repayment costs than in 2007.