Don&#39t wait too long to take out a loan, warns AA

The AA is maintaining its lowest-ever internet loan rate (6.5 per cent typical APR) during the run-up to Christmas despite warnings that the days of low-cost loans may be numbered.

Neale Phillips, the AA&#39s general manager, financial services, says: “The recent increase in the Bank of England&#39s interest rate is expected to be followed by a further rise in the new year.

“This means that lenders are unlikely to be able to maintain some of the extremely low rates we have seen over recent months.

“As Christmas approaches, many people start to think about how they can control their spending. December and January are the most popular months for customers to consolidate credit and store card balances and generally tidy up their finances. But now is a good time to act

&#45 there are some exceptional unsecured fixed loan rates available, including the AA&#39s, but they&#39re not going to last for ever.”