It might actually be cheaper to borrow larger amounts with some personal loans, new figures show.

This is because personal loans(ask4loan.co.uk) of under £5,000 have become more expensive while the cost of loans of over £5,000 has dropped or barely moved.

"It really is the case for the customer that bigger is better when it comes to personal loans. The more you borrow the better the deal you get. The less you borrow the more the lenders cash in," said Sean Gardner, chief executive of MoneyExpert.com - who conducted the research.

Probably a good deal if you can repay early and thus get away from the excessive interest!

I don't really understand the principal behind this. Why do you get a better deal f you borrow more?

Because they stand to gain more from the interest rates. That where they make their money. Thatn is also why people are often turned down for a small loan but get a larger one handed to them.