The percentage rise in the number of personal loans and credit cards has fallen to its bottom in the last few years. However, the growth rate of secured home loans is the highest in more than two decades.

Home loan approvals in November 2005 were 115,000 and people took out home loans worth £27 billion in the same month. Industry experts believe that house prices will remain unchanged in the coming years. This is a good sign for the home loan industry.

Meanwhile, lenders in the UK are now competing hard to keep a hold on the personal loanmarket. They have resorted to interest rate cuts to beat the competition. Moneyback Bank has slashed its personal loan rate to 5.5% APR. Earlier it was 5.7% APR. Halifax and Bank of Scotland have reduced the interest rates on their personal loans from 6.4% APR to 5.8% APR.