Loan apathy costing hundreds of pounds

A THIRD of people taking out a personal loan failed to shop around for the best deal.
By The Newsroom
Published 26th Nov 2010, 18:43 BST
Updated 26th Nov 2010, 18:43 BST

Around 33 per cent of people accepted the first loan quote they received, while 54 per cent of people took out a loan from their current account provider, according to Sainsbury's Finance.

The group said people's apathy was costing them hundreds of pounds in extra interest, with borrowers paying an average of 390 more for a 5,000 loan over three years from a current account provider, compared with the market leading rate. The research found that older people were most likely to go straight to their current account provider.

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Steven Baillie, head of loans at Sainsbury's Finance, said: "Given the rise in number and popularity of price comparison websites it's surprising so many people still go straight to their high street bank without comparing deals."