Personal loan interest rates

K

kkelly77

Registered User
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Hello all,

I've had a quick look around on the banks' websites, looking to refinance an outstanding home improvement loan. Currently ~€16k @ 8% fixed, €380 per month.

Thought with the decrease in ECB interest rates there'd be some good deals to be had. NOT ONE!!! Interest rates seem to be over 10% for most lenders. What gives?

K
 
A similar question was raised in one of the papers a few weeks back regarding personal loans and credit card interest rates (I can't recall which paper or even when exactly).

When the banks were questioned on it their response was that most personal loans and credit card facilities are unsecured and implied that these types of loans have a high default rate, hence the lack of a reduction in the interest rates despite the reduction in the ECB rate.

On the face of it, that explanation makes sense, but I wouldn't be surprised if the rates were being kept artifically high.

If it's of any assistance, the Financial Regulator's website also has cost comparisons of personal loan rates here - http://www.itsyourmoney.ie/personalloancomparison
 
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