Loan Rates Fall Slightly In January

Personal loan rates dropped slightly during January, after hitting a record high level in November last year, according to Bank of England figures.

A £5,000 loan fell from its record high interest rate of 13.38% in November to 13.32% in January, while a £10,000 loan dropped to 10.91% on average, down from the 11.08% measured the previous month.

However, credit card borrowing rates increased again on average to the highest level seen since July 2006. It was measured at 16.4% in January.

Savers also had little cause to celebrate, as the returns paid on Isa and instant access accounts stayed at 0.41% and 0.17% respectively, although notice accounts edged up to an average of 0.35%.

Returns on fixed-rate bonds, currently the most competitive area of the savings market, fell for the fifth consecutive month to 2.46%, down from 3.05% in August.