Consumers pay over £1bn extra on uncompetitive loans, says IF

Intelligent Finance has that it will be reducing its personal loan rate from 8.9% to 7.9% with effect from August 27 for a limited period of one month.

With 46% of people holding an unsecured personal loan in Great Britain to finance a car deal, the move is timed to coincide with the expected heavy car sales for the new September 1 car registrations.

Intelligent Finance is launching an aggressive new marketing drive to alert car buyers to its flexible offset personal loan, the &#39Intelligent Loan&#39. Take-up of the product has already been strong and Intelligent Finance believes that wider awareness of the way it is uniquely tailored to suit peoples lifestyle needs will see its flexible loan become as popular as the flexible mortgage in the next few years.

To date, many people continue to lose out by getting saddled with uncompetitive and inflexible loans. Intelligent Finance estimates that consumers are likely to pay over £1bn in extra interest over the course of this year alone as a result of failing to shop around for a more competitive deal.

IF claims that the &#39Intelligent Loan&#39 offers three key advantages over many traditional products. It says it is fully flexible, allowing customers to choose to pay more than the monthly payment or make one-off payments to reduce the term of their loan and the interest charged without repayment penalties. Alternatively, customers can also have the opportunity to take two payment holidays should they choose.

IF adds that customers get the best rate available irrespective of the amount they choose to borrow, and they can get 0% on all or part of their loan.

Chief executive Jim Spowart says: “When most people look for a car, they take time to ensure it has all the right extras. But when it comes to the finance to pay for it, they often don&#39t check the detail and end up with uncompetitive deals.

“Our &#39Intelligent Loan&#39 not only has a very competitive rate, but it comes with what we think are all the essential extras &#45 daily interest, no repayment penalties, and offsetting for interest purposes. Everyone has an idea of his or her dream car; we believe we&#39ve got the dream loan to match. In future, it&#39s the way all loans will be.”