Consumers could save billions by switching loans
(25 January 2008)

Consumers could save almost £1.25 billion by switching loans mid-term, according to uSwitch.com.

Research by the website showed that people with an £8,000 loan over five years could save £180 by switching to a better deal half way through.

However, the study revealed that 2.5 million unsecured loan customers would not switch loan because they think the savings are too small.

A further six per cent of respondents did not realise it was possible.

Mike Naylor, personal finance expert at uSwitch.com, said: "In such a volatile unsecured personal loan market, five years is a long time to stick with the same provider as rates fluctuate constantly. For example, in the second half of 2007, more than 30 providers increased loan rates by around one per cent APR."

"With more base rate decreases predicted over the next 12 months it's possible that we may see other providers following this example and offer more competitive deals than those available last year," he continued.

Meanwhile, the British Insurance Brokers Association has called for tightened up regulations of price comparison sites after it found that more than half of customers did not understand them.