'Loan rates steady' despite Bank rise

The interest rate increase at the beginning of this month has lead to a rise in mortgage rates, although personal loan rates have stayed the same, according to MoneyExtra.

While some competitive lenders have hiked their charges in accordance to the Bank of England's decision, borrowers are still likely to benefit if they shop around for a deal now, the group said.

And with many industry experts predicting another rise soon, Robin Amlot, the organisation's senior editor, has urged consumers to be quick if they are considering taking out some extra money.

"If you're looking for a loan - whatever the reason, be it a new car, holiday, home improvements or even debt consolidation - you should consider acting now to lock in an attractive interest rate," he commented.

The Bank of England's base interest rate currently stands at 5.25 per cent - it's highest level since July 2001 - but lower than its decade-spanning high of 7.50 per cent in July 1998.

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