In spite of the recent £50 billion bailout by the UK government and the coordinated move by central banks worldwide to cut interest rates, it has been found that loans rates in the UK are continuing to rise.

In a recent survey by an insurance firm it was found that less than 10 lenders in the country offer rates that are less than eight per cent.

The study also revealed the tendency for rates to rise, while the number of those offering low rates decreases was not ruled out.

An example was also cited of one who takes out a loan of £1,000 repayable in one year having the rate rising to 6.8 per cent. And for a loan of £5,000 paid over a period of three years the rate has risen to 1.2 per cent.

In another study it was also found that the total number of loans currently available has diminished to 52 from 56.