Taking a loan could save borrowers money
A study from the Financial Researcher show that borrowing a lower sum of money could cost more as higher interest rates are often charged on lower tiers.
David Black from Defaqto is advising borrowers to research interest rates levels for each tier as selecting a bigger loan may save them money. Borrowing a larger sum of money could save up to £1000 according to the research.
As interest rates tend to be lower for bigger loans, Defaqto is recommending consumers to be careful when choosing their loan as they my find more competitive rates on higher tiers.