More people apply for debt consolidating homeowner loans in January than any other month of the year – but borrowers who don’t find the best rate will lose out.
“Sadly, many people don’t shop around when taking out a personal loan, wrongly assuming they can only obtain a loan from the bank or building society they have their current account with,” said Steven Baillie of Sainsbury’s Bank.
“Consolidating your debts with a more competitive loan could save you hundreds or thousands of pounds in interest so it’s important to shop around to find a competitive rate.”
Financial analysts estimate that 150,000 Britons will apply for a homeowner loan during the first two months of 2006, with many providers lowering their best rate offers to stand out from the pack.
Provider competition has also been stoked by a rumoured base rate reduction during the first months of 2006.
“I have never seen such a frenzy of activity in such a short space of time,” said financial advisor Stuart Glendinning.
“Providers are obviously aiming to get the year off to a good start – January is the biggest month of the year for loan applications as consumers look to consolidate debt and sort out their finances.”
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