Shopping For Best Personal Loan Products 'Pays Dividends'

Taking the time to find the most competitive financial280 pounds if they choose the best deal, compared
products including personal loans available could saveto the 25 pounds being offered by the most
consumers thousands of pounds, it has beenuncompetitive supplier.
revealed.Choosing a leading cash individual savings account was
According to research carried out by Moneyextra,reported to earn consumers some 62 pounds and 70
choosing the right mortgage can save up to 3,132pence more in interest.
pounds, a figure which could help many homeowners"Shopping around for the right savings products can
pay off secured loans quicker.also pay dividends," Mr Amlot added.
Senior editor Robin Amlot said: "Getting yourThe findings also revealed that picking a competitive
mortgage right is the key financial decision in termscurrent account could generate an extra 64 pounds,
of financial efficiency.with the right term assurance policy potentially saving
"The potential savings on your mortgage account forup to 135 pounds every year.
almost 70 per cent of the total savings to be made."Earlier this week, it was suggested that those
These findings from Moneyextra come despitehomeowners wishing to fix their monthly secured
mortgage rates rising over the last three months,loan repayments should look to act as soon as
which consequently has seen more homeownerspossible.
struggle to make mortgage repayments.According to moneysupermarket, a number of
Overall, the financial services firm indicated that bylenders are beginning to increase interest rates on
replacing some of the worst financial productstheir fixed-rate products, following the Bank of
available for more competitively-priced deals, BritonsEngland's monetary policy committee (MPC) decision
could save a total of 4,477 pounds - an increase ofto raise the base rate to 5.5 per cent last month.
150 pounds from the same survey carried outHead of mortgages Louise Cuming said: "Borrowers
available three months ago.needing the stability of a fixed-rate product should
However, the study indicated that savings rates onreserve their next deal now if their current mortgage
personal loans have fallen since March.term is set to end soon."
For a 9,000 pounds loan taken out over a 60-monthShe added that although fixed-rate products "have
period the highest savings on offer was 279 poundsbeen looking pretty good", the moneysupermarket
a year down from the previous survey whichrepresentative warned that "they appear to be going
indicated a peak saving of 386 pounds.up - and fast".
The fall was attributed to a "narrowing" of interestThe expert also pointed out that as lenders continue
rates from the best and worst products, while ratesto increase the costs of fixed-rate deals, the financial
on personal loans in general are said to remain "highlyindustry has predicted that the MPC is likely to
competitive".increase interest rates when it holds its next monthly
Meanwhile, the financial services firm also revealedmeeting - which is scheduled to take place on July
that for those looking to put 5,000 pounds into an5th - a move which could well further pressurise
instant access savings account, consumers could earnconsumers into making repayments on secured loans.