A spokesperson from a major high street lender has blamed the ongoing credit crunch for a rise in interest rates on large personal loans.

According to the Halifax the loans market has become less "aggressive" in recent months and many lenders have decided to keep out of the market altogether. 

Lenders have become increasingly wary to lend money to people who are seen as a potential risk, especially compared to previous years.

According to new research, previous loan deals for large unsecured loans have also begun to rise, with some rates now exceeding levels for very small loans. Previously deals for large loans of above £10,000 made them much cheaper than smaller loans.

Donna Earnshaw from the Halifax told reporters that high levels of loan defaults was hampering the market and making lenders extremely wary.

She said: "In the loans market there is not the aggressive competition as it was. Lenders are being more cautious."