When considering the option of taking out a loan, consumers have been advised to take the time to gain a good knowledge of the available options.
Mark Bower, managing director of moneymaxim.co.uk, commented that there are still some good deals on offer.
He added: "The days of just going to your bank and expecting them to provide you with the best rate because of your relationship with them are definitely gone."
His comments come off the back of those made by the governor of the Bank of England, Mervyn King.
Mr King claimed that greater competition in the banking sector was likely to work out in favour of consumers as banks would try to outdo each other with their rates.
He went on to add that this increased competition would also benefit the banking industry in the long run.
Recent figures released by the Bank of England indicate that lenders had increased their portfolio of unsecured lending after the base rate had been lowered.