(PRWEB) October 23, 2004
Consumers opting for one of the best loan rates currently available could be paying over Â£4,400 in Payment Protection Insurance (PPI) on top of their personal loan repayments.
The research from independent comparison and switching service uSwitch.com Personal Finance reveals that the cost of PPI among the top 15 personal loan rates varies considerably from CahootÂs Â£1,205 (or 10% additional cost on top of repayments) to the Bank of ScotlandÂs Â£4,424 (38% on top of repayments).
15 Best Buy Personal Loans - ranked by Typical APR
Loan Product Typical APR Total Cost without PPI Total Cost with PPI Cost of PPI Additional Cost % (over initial repayments)
Northern Rock Fixed Personal Loan 5.6% Â£11,450 Â£14,276 Â£2,826 24.7%
Cahoot Fixed Personal Loan 5.7% Â£11,476 Â£12,681 Â£1,205 10.5%
Abbeyloan (Internet Only) 5.8% Â£11,503 Â£13,146 Â£1,643 14.3%
Alliance & Leicester Fixed Personal Loan Internet 5.8% Â£11,503 Â£13,512 Â£2,010 17.5%
Lombard Direct Fixed Personal Loan (internet only) 5.9% Â£11,529 Â£14,360 Â£2,831 24.6%
Liverpool Victoria LV Personal Loan (Internet) 6.0% Â£11,555 Â£13,242 Â£1,686 14.6%
Smile Fixed Personal Loan 6.0% Â£11,555 Â£14,408 Â£2,853 24.7%
Direct Line Fixed Personal Loan Internet 6.0% Â£11,555 Â£14,401 Â£2,845 24.6%
AA Fixed Personal Loan (Internet Only) 6.1% Â£11,582 Â£15,172 Â£3,590 31.0%
Bank of Scotland Personal Loan 6.1% Â£11,582 Â£16,006 Â£4,424 38.2%
Co-operative Bank Personal Loan (Internet) 6.1% Â£11,582 Â£14,441 Â£2,860 24.7%
British Gas Fixed Personal Loan (Internet Only) 6.2% Â£11,608 Â£15,207 Â£3,599 31.0%
Marks & Spencer Personal Loan (Internet) 6.2% Â£11,608 Â£13,623 Â£2,015 17.4%
Marbles Fixed Personal Loan 6.3% Â£11,635 Â£13,729 Â£2,094 18.0%
Tesco Fixed Personal Loan Online 6.4% Â£11,661 Â£13,538 Â£1,877 16.1%
Data provided by http://www.uSwitch.com Personal Loan Calculator. Correct as of 7 October 2004
Note: comparison based on: Â£10,000 Unsecured Personal Loan, 5 year repayment period, 15 Loans by Typical APR.
Paul Schofield, Head of Personal Finance at uSwitch.com comments: ÂThe main issue surrounding payment protection insurance is that it is an expensive product which can often send a market-leading loan tumbling to the bottom of the rate table. There is an enormous disparity between the PPI offered by different lenders, charges are presented in an ambiguous way and customers often feel under pressure to purchase PPI direct from their loan provider without realising the alternatives.
uSwitch.com is a free, impartial online and phone-based comparison service which helps consumers compare prices on gas, electricity, home telephone, digital television, credit cards and loans. Our aim is to help customers take advantage of the best tariffs and services on offer from every supplier. The company has developed a set of proprietary calculators that evaluate a number of factors to advise customers on the best deal to suit their individual needs.
The service is also available via telephone, fax and post. Consumers can call on 0800 093 06 07, fax 020 7233 5933 or write to Customer Services, uSwitch.com, 10th Floor, Portland House, Stag Place, London, SW1E 5BH.
uSwitch.com is not a supplier but acts as an independent advisor, giving customers an impartial view of whatÂs on offer. Unlike traditional brokers, it compares prices from all suppliers, not just those it has a commercial relationship with. The service is based on the most up-to-date information provided by the supplier companies and industry regulators.
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