Lenders have continued to increase loan rates, according to a price comparison website, despite the fact that the Base Rate has remained at a historic low of 0.5% for the past six months.

While the average interest rate for a £1,000 loan has remained at 19.7 % since March this year, the cost of larger borrowing has increased.

For instance, the average rate of interest for a £5,000 loan has risen by 0.2 % to 12.4 %, while borrowers looking for a £10,000 loan can now expect to pay around 9.9 % in interest, compared to 9.4 % in March.

According to the website, Norwich & Peterborough Building Society has enforced one of the biggest increases – upping rates by 1.7 % for loans between £10,000 and £25,000.

In contrast, Abbey loan rates have increased by 0.1 % to 0.6 % for those looking to borrow between £1,000 and £3,000.

Apart from the increase in rates, it seems that the majority of lenders have tightened their lending criteria.

Commenting on this, Michelle Slade, a spokesperson for the website, said: "Lenders have continued to tighten up their lending criteria, with only customers with blemish free credit records likely to be accepted for a personal loan. Those customers that are accepted are having to a pay an increasingly higher price."

She warned potential borrowers that this "upward trend in rates looks set to continue. Anyone in need of a personal loan really needs to ensure they do their homework to find the best deal possible or they will be left severely out of pocket." she added.