Borrowing more on loans ‘could cost less’

People who take out more in loans may ending paying less, according to comments from one expert.

Figures from Find.co.uk suggest that many lenders are charging lower interest rates on larger loans than they ones they apply to smaller ones.

This means that repayments could be lower for borrowers taking out loans products that are larger in size, says the website.

Kate Marsden, marketing director of Find.co.uk, commented: “Borrowers should take care when choosing the size of loan they want, as a little effort in researching the interest rates charged on different tier levels could save them a considerable amount of money.”

Borrowers might also choose providers that charge standard interest rates across their range of products if they do not have the time to investigate rates, Ms Marsden continued.

In related news, the Council of Mortgage Lenders recently announced that the number of people in mortgage arrears hit a record high at the end of 2006.

© Adfero Ltd

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