Third of borrowers fail to shop around, according to survey


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A third of people taking out a personal loan failed to shop around for the best deal, a survey has suggested.

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.

Bank signs on the high street

Shopping around: More than half of borrowers get a loan from their current bank


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, although in some cases the difference was more than £1,400.

The research found that older people were most likely to go straight to their current account provider, with 76 per cent of the over 65s doing this, compared with just 40 per cent of those aged between 25 and 34.

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

ICM questioned 2,000 people during October.

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