The average rate of an unsecured personal loan has increased by one per cent in the last six months, despite the Bank of England cutting the base rate three times, according to figures released by MoneyExpert.

This is specifically on loans between £5,000 and £7,500 as experts still believe individuals can get more competitive rates if borrowing a larger amount.

Sean Gardner, founder of MoneyExpert, said: "You will pay lower rates on average if you borrow more. Lenders take the view that those borrowing more are generally a better risk than those borrowing less and offer better deals as a consequence."

Such news may be of interest for those looking to get a loan in an attempt to consolidate debts.

Figures recently released by MoneyExpert show that 3.24 million British consumers were turned down for a credit card deal in the last six months.

This rise in the amount of people not being approved for credit follows lenders tightening their criteria as to who they wish to lend to in what they see as a market growing in risk.