Loans get more expensive

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There are a few scenarios that are likely to take place over the next 12 months or so.

The banks will be forced into trading via a code of conduct, which will be enforced by the Government and the BBA.

Borrowers will gain strength in a weak market, and will be able to find better deals than offered from unfair companies such as AA and Lombard Direct.

Loans get more expensive

MoneyExpert.com has released research which shows that two loans providers, AA Loans and Lombard Direct, raised the rates of interest on their cheapest loans on a day when the Bank of England significantly lowered interest rates.

According to the price comparison site, this morning Lombard Direct raised the rate of interest on one loan from 7.8 per cent to 8.3 per cent, while AA increased theirs from 8.5 per cent to 9.4 per cent.