Martin Lewis MSE site shares urgent loan warning as deals likely to be pulled

Brits who want to secure a loan have been warned they need to act immediately before cheap deals vanish.

Martin Lewis' MoneySavingExpert website told Brits they will need to apply now if they want a loan, as the cheapest deals are likely to be 'pulled any minute'.

Writing on the site, they said: "The cheapest personal loan rates have doubled in the last 18 months. While we can't confirm this, we've heard it's very likely that more than one of the market's cheapest loans are about to be pulled – or at least repriced at higher rates – any minute.

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"If correct, it means if you currently need to apply for a loan, speed is of the essence. After that, we may well be close to rates plateauing and stabilising, so this isn't a call about the longer term."

Despite his warning, the experts told people to only get a loan now if it's needed or you were planning to anyway. They also said it's important to be able to afford the repayments on it.

The post read: "It should be for a necessary, one-off purchase (new freezer, kitchen, car etc) you can't pay for from savings. Never borrow willy-nilly to fill gaps in your income, as it can spiral out of control. Before borrowing, budget to ensure you can afford the repayments, borrow as little as you can, and repay as quickly as you can. Overall, if in doubt, don't."

The site recommended that people aiming to switch credit cards to loans may find that a balance transfer is cheaper. It also said those who are already struggling with debt won't be able to borrow money as a way out of it.

Brits can use the website's Loans Eligibility Calculator to find out which loans you'll likely get without impacting your ability to access credit.

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Those looking for a loan have been advised that lenders needn't give you the rate they advertised at.

The site reads: "All loans listed, and virtually all personal loans on the market, are 'representative APR'. That means they only need to give 51% of accepted customers that rate – the rest can be charged more without limit."

Meanwhile, those who do get a loan were advised to pay on time (preferably by direct debit) or you may be charged and get a missed payment on your credit report, which can cause real problems.

The post comes after Martin recently told Brits they can save hundreds by making a simple banking change.

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