Interest rates on personal loans fall to lowest levels on record

Bank of England credit conditions survey for Q2 found rate for 10,000 loan is just above 4%, with greater competition among lenders cited

Interest rates on personal loans have dropped to the lowest levels on record in the latest evidence that the cost of borrowing is continuing to fall for consumers.

While mortgage rates slumped to record levels in May when the Co-operative Bank launched a two-year rate at 1.09%, the Bank of England said rates on personal loans had also reached the lowest levels since records began 20 years ago. A 10,000 loan costs just above 4%.

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