'Still good deals to be found' on personal loans - 19/11/2007

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Despite the fact that lenders are "getting tough" on loan rates and applications, there are still good deals to be found on personal loan products, MoneyExpert.com has said.

According to Sean Gardner, chief executive at the financial advice website, borrowers wishing to take out a large amount of money are often more likely to be approved than people looking to take out a smaller personal loan.

He explained that given the arrival of the credit crunch in the UK, people looking to borrow more money are perceived to be a lower risk to lenders.

"It may seem paradoxical, but you will be charged more on average for borrowing less," he said.

Mr Gardner added that it is more difficult to find a competitive deal for people borrowing around £5,000 than there are for people looking to borrow £7,500 or higher.

"Lenders take the view that those borrowing more are in general a better risk than those borrowing less and offer better rates as a consequence," he explained.

In related credit crunch news, research carried out last month on behalf of GE Money Home Lending has shown that 23 per cent of mortgage applications have been directly impacted.

Some of the adverse effects of the crunch include product ranges being withdrawn, as well as lenders making amendments to lending criteria and product dates at short notice.

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