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Byline: WITH TRICIA PHILLIPS

GREEDY banks are hiking rates on personal loans by as much as 0.7 per cent, despite the Bank of England base rate only rising 0.25 per cent.

Lenders have been quick to hit borrowers with higher interest, but not so speedy at paying savers more. Loan rates have been at record lows, below three per cent but these are disappearing fast.

Moneycomms.co.uk researched rates on loans of PS10,000 and more.

Sainsbury's Bank have upped their rate from 2.8 per cent to 2.9 per cent but haven't increased interest for their savers. M&S Bank's loan rate has risen 0.2 per cent to three per cent, more than the 0.15 per cent increase on their Everyday Savings Account rate.

TSB's loan rate is up 0.4 per cent to 3.2 per cent, more than double the 0.15 per cent increase for the majority of savers.

Clydesdale and Yorkshire Bank have jacked up their loan rate from 2.9 per cent to 3.6 per cent, while savers have had rate increases from 0.1 per cent to 0.25 per cent.

Sainsbury's Bank's 2.9 per cent is still the best rate for a PS10,000 plus loan, along with John Lewis Finance, while AA Loans, M&S Bank and Cahoot charge three per cent.

Andrew Hagger of Moneycomms.co.uk said: "If you're looking to make a large purchase or consolidate borrowing it's probably wise to act sooner rather than later."

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Publication:Daily Record (Glasgow, Scotland)
Date:Dec 5, 2017
Words:256
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