A number of lenders have increased the rates of personal loans by up to 1.2 per cent for new customers since the beginning of this month, it has been revealed.

According to research, personal loan customers on a typical loan of £10,000 may see a rise of £322 in interest paid.

Marks and Spencer Money is said to have increased selected rates by 1.2 per cent, while Egg is said to have increased £3,000 to £20,000 by 1 per cent to 14.9 per cent.

Alliance & Leicester also increased its rates with £5,000 to £7,499 increasing by 0.1 per cent to 8.9 per cent and £7,500 to £15,000 increasing by 0.8 per cent to 8.7 per cent.

Commenting on the figures, Louise Bond, personal finance expert at a price comparison website, said: "As consumers struggle to make ends meet and manage their finances, loan providers are looking to offer the best rates to those whose financial behaviour they can closely inspect - which are their existing customers.

"Last year 1.3 million consumers used an unsecured personal loan for debt consolidation purposes. However, with the number of personal loans available dropping by 37% this year and rejection running high, it would be highly unlikely that a similar number of consumers would be able to consolidate their debts this year.

“However, for those that are thinking about, or attempting to do this, it would definitely be worthwhile finding out what rates existing providers can offer, as it seems loyalty is one of the only aspects that could win consumers better interest rates at the moment."