MPs want to tackle legal loan sharking
July 9, 2011
In the current difficult financial and economic market a huge number of people have found themselves in dire straits in terms of their finances. With the cost of living rocketing due to soaring petrol costs, spiralling inflation, food price hikes, higher bills, and more, there are many people who have been struggling to make ends meet and many that have had to look at ways to bridge the gap between the amount that they have and the amount that they need.
Whilst some people have managed to turn to friends and family in order to get financial assistance there are some people, such as those with poor credit and low income families, who have turned to legal loan sharks. In fact, with the climate in a bad way loan sharks have been able to use the situation to their advantage by targeting those on low incomes and with bad credit, who they know will not get finance from other lenders.
MPs now want to crack down on these doorstep lenders and loan sharks who, whilst legal, are ripping off people that are already struggling by charging them a fortune in interest. A group of MPs wants to make the issue one that is faced and tackled because the extortionate rates being charged are putting many people in an even worse situation.
One MP said: ‘Ministers from both the Treasury and the Department for Business, Innovation and Skills have agreed with me in the past that the high-cost credit sector is a problem which needs to be addressed, but refuse to intervene in the market. With Moneysupermarket.com reporting a 58% spike in applications for payday loans in just one month, and with all the signs suggesting that high-cost credit is growing exponentially, it’s not good enough just to acknowledge the problem yet do nothing about it.’
Loan and mortgage rates drop
June 30, 2011
For many borrowers in the UK there has been some welcome news recently, after it was revealed that both mortgage and personal loan rates have been falling. For those that are taking out mortgages, thinking of refinancing, or wish to take out a personal loan this could mean significant savings on the cost of their borrowing, which is something that many people are looking for in the current financial climate.
The base interest rate in the UK still stands at its record low of just 0.5 percent, where it has been for well over two years now. The good news for consumers is that with loan and mortgage rates now dropping further, borrowing becomes far more affordable. Mortgage rates are said to have dropped to their lowest level in twenty three years according to reports. Many person loans are now offering rates of below 7 percent.
Figures show that the average rate on a loan of between £7500 and £15,000 is 8.6 percent, but due to individual lenders dropping their rates to compete more fiercely there are some very good deals about with these mid-range loans available for under 7 percent. However, interest rates are much higher on smaller loans, with the average rate on a loan for £3000 coming in at an average 19.1 percent.
This means that those considering a personal loan will need to determine whether they could actually be better off taking out a slightly larger loan in order to get a far more competitive interest rate than a small loan with high interest rates.
One finance expert said: “For anyone looking to carry out home improvements, a personal loan is a good choice - particularly for borrowers who are prevented from increasing their mortgage due to loan to value restrictions. Let’s hope other banks and building societies are forced to follow suit to maintain their slice of the market.”
Paying off credit cards with a loan could be beneficial
June 18, 2011
It has been suggested in a recent report that many people in the UK that have high levels of credit card debt could actually benefit by paying off their high interest credit card debt with a lower interest personal loan. Around one third of people in the UK have admitted that their personal debt levels have increased over the past year and for many of these people the main burden of this debt is high interest credit card debt, which is clocking up huge amounts of interest.
With credit cards charging such high rates of interest, with an average of 18.43 percent despite the rock bottom base rate of just 0.5 percent, many people will be paying these cards off for years if not decades if they are only able to make small repayments towards clearing the balance. Over that period of time they will also pay out a huge amount in interest.
It is suggested that rather than do this, consumers may be better to search out a competitive personal loan and they use it to repay the credit cards. The loan will be taken over a set period of time with a set rate of interest. Consumers can therefore be more structured with their repayments, knowing exactly how much to pay each month, when the loan will be cleared, and how much interest they will pay over the term of the loan.
One official said: “There is no need for consumers to bury their heads in the sand when it comes to their finances and by taking steps to reduce personal debt, many of these problems can be nipped in the bud early on, before they escalate out of control. Trimming down household budgets and ensuring they are paying as little as possible for all their financial products can really help to free up some cash to pay down debt, and should be the first port of call for anyone who is struggling. If you are in the fortunate position where you are able to consolidate your debt, an interest free credit card would always be a good solution. Alternatively, a personal loan could be an option if you want fixed repayments and pay down your debt over a set period of time. For those in more serious trouble, I would advise seeking help from one of the free debt advice charities who can help.”
Loan protection is still necessary
May 31, 2011
Over recent years there has been a lot of new coverage about the mis-selling of payment protection insurance, or PPI, on loans, credit cards, and other forms of finance. This has been in the headlines more than ever over recent weeks, after a court ruling that resulted in banks having to compensate and reimburse consumers who claimed that they had been mis-sold the cover when they took out the finance.
All of the negative publicity about PPI and the way in which it has been mis-sold over the years by banks and financial institutions has put this cover in a very bad light, and many people who take out finance automatically think that PPI must be a bad think. However, officials have warned that the bad press that PPI has received does not mean that consumers who are taking out finance should avoid the cover but that they should shop around for a good deal that suits their needs.
PPI is designed to protect the monthly repayments on the finance that you are taking out in the event of accident, sickness, or redundancy. It can be very useful if and when it needs to be used. However, problems arose because banks and financial institutions had been found to be selling it to people that were not eligible to claim, making people think that they had to take it to get the finance that they needed, or adding it on without their knowledge.
One official said: “All of the controversy that has arisen over PPI should not make people think that they should disregard this cover, as it can be very valuable. However, it should make people think about checking policies to ensure that they are suited to their needs and make them shop around for the most competitive deals.”
Personal loan rates at highest in a decade
May 23, 2011
It has been reported that rates on personal loans in the UK have reached their highest level in a decade, making it even more important for consumers who are considering taking out a loan to ensure that they compare the rates being charged carefully. The base interest rate is still at its all time low of just 0.5 percent, but despite this the rates on personal loans have soared to their highest in ten years.
Smaller loans in particular have been hit with these high rates, with the average rate on a loan for £5000 now coming in at 12.7 percent, which is the highest it has been since May 2000. There have been many fluctuations in personal loan rates over the past decade, with rates falling as low as 7.8 percent in May 2006. However, rates have been rising since this time and are now edging towards the May 2000 high of 13.1 percent.
One industry official said that one of the reasons behind soaring loan rates was that lenders were taking huge risks with personal loans that were unsecured because there was no collateral to provide them with the security that the loan would definitely be repaid one way or another. In the current climate this is a huge risk for banks and therefore they are charging much higher rates to cover themselves for this risk.
She added that it was very important for people to compare loans for the best deals before making any commitment, as otherwise they could end up paying over the odds.
She stated: “Most people’s first port of call for a loan is their bank, but in most cases this is far from the cheapest option. The price war between supermarkets isn’t just on groceries, it has spilled over into the personal finance market. On nearly all loan amounts the supermarkets have the most competitive rates.”
Poor credit affecting consumers’ ability to get affordable loans
May 3, 2011
Many people are struggling to get an affordable loans these days, with banks particularly cautious about who they lend to after the turbulence of the last couple of years in the financial markets. Over the past few years banks have become far more stringent about who they are prepared to lend to and it has become increasingly important for those thinking of applying for credit to ensure that they check their credit report.
According to one recent report the poor credit reports and scores that many people have are hampering their ability to be able to get finance at an affordable rate - or in some cases at all. Lenders are being more and more stringent about the credit score and history of those that they are prepared to lend to and with this in mind more and more people are now being turned down for loans or only managing to get loans with very high APRs.
Industry experts have advised anyone that is considering applying for credit of any sort to make sure that they check their credit report and score first. This can be done through one of the three credit reference agencies in the UK, which are Experian, Equifax, and Callcredit.
One industry official said: “Many people still fail to realise just how important their credit score and history is when applying for finance. If they apply without checking their credit they stand a far greater chance of being turned down or only being able to get a loan with a really high APR. If they check their credit first they can give themselves some time and improve their credit if they need to before applying for a loan.”
High Court rules against the banking industry
April 20, 2011
For a number of years the topic of Payment Protection Insurance, or PPI, has been a hugely controversial one, following claims that millions of people had been mis-sold the cover over the years. Consumer groups have been campaigning to ensure that those that were mis-sold the cover are compensated but the banking industry has said that it would be too costly to do this.
However, this week the High Court ruled against the banking industry, which means that the industry could be set to face costs in excess of £4.5 billion because of the number of claims that they are likely to be faced with. Millions have already sent in claims previously, which were dealt with by the Financial Ombudsman Service and were usually ruled in favour of the consumer.
After this week’s decision many more people will be likely to send in a claim over mis-sold cover because of their increased chances of making a successful claim. Consumer campaign groups have been delighted with the decision that was reached today, as they say that millions of people were sold the cover when they could not even claim on it, others were sold the cover without even knowing about it, and some were pressured into taking out the cover even though they didn’t want to. The banking industry, on the other hand, has been very disappointed with the ruling.
A spokesperson from the BBA said: ‘We are disappointed with today’s judgment and now need to consider the details of it very carefully as well as next steps, including whether it would be appropriate to apply for permission to appeal. Any complaints that are directly affected by the judicial review and therefore cannot be decided will continue to be placed on hold until the next steps have been decided.’
Increase in loans taken out by Brits
March 26, 2011
Over the past couple of years consumer appetite for debt has been dampened as a result of the difficult financial climate and the recession. Many people have been concerned about the security of their jobs, as well as already struggling with their finances due to existing debts and the soaring cost of living. As a result of this many have been steering clear of loans and other new debt because they might struggle to make repayments.
Another reason behind the reduction in personal loan use over the past couple of years is the drop in the number of loans being granted by lenders. Since the onset of the global financial crisis lenders have been far more careful about offering finance to consumers due to the risk of defaults, which has naturally had an impact on lending levels.
However, according to recent figures January saw the amount of consumer credit that was taken out by Brits increasing for the first time since August. This was fuelled by a jump in new unsecured loans, which soared by 27 percent year on year, with a total of £209 million in borrowing. Car finance also increased by 16 percent to £812 million and credit card lending went up by 3 percent to a whopping £2.36 billion. The figures were released by the Finance and Leasing Association.
However, data showed that consumer confidence levels remained low, and borrowing associated with High Street lending, such as store cards, remained low with a drop of 18 percent in store card borrowing.
An official from the FLA said: “In the last 12 months our members provided over £50 billion of consumer credit, but consumer confidence remains low. A sustained economic recovery is dependent on a competitive market that creates more choice for consumers.”
Beat the interest rates when it comes to loans
February 22, 2011
When it comes to taking out a loan we all want to get the best deal possible, and this is something that can save us a lot of money on our monthly repayments as well as on the overall levels of interest that we pay on our borrowing. It is important to seek out the most affordable and suitable deal when it comes to loans, and this can be done by comparing the various loans and lenders on the market to see what they offer in terms of value for money.
When it comes to getting an affordable, good value, suitable loan it is a matter of taking the time to do some research as well as getting the timing right. Over recent months some lenders have reduced the loan rates on their mid-range personal loans, making them better value for money and enabling borrowers to enjoy more competitive deals and rates.
However, this is something that will not last for long, as interest rates are certain to rocket once the base interest rate increases, which it is likely to over the coming months due to the increased pressure placed on the Monetary Policy Committee stemming from rocketing inflation. Many believe that the base rate will increase in around April or May, and this could mark the first of a series of increases for this year.
The base interest rate has been at an all time low of just 0.5 percent for nearly two years, and this is the lowest level it has ever been in the history of the Bank of England, which spans over three hundred years. However, it is unlikely that the base rate can stay at this level for much longer, and with inflation levels now soaring at twice the government’s set target of 2 percent, many believe that the base rate will increase sooner rather than later.
If you are thinking about taking out a loan this year you need to make sure that you do so before the interest rates start to increase later this year, as otherwise you could end up paying far more for your borrowing. When the base rate increases lenders will no doubt act quickly to increase their own interest rates, and this means that you will see both the repayments you have to make and the overall level of interest that you pay increase.
Consumers should use continued rate cuts to their advantage
February 2, 2011
Consumers who may be looking for a personal loan are being advised to use personal loan rate cuts to their advantage by ensuring that they compare the options open to them and try to get the best deal. There are a number of lenders, including banks and even supermarkets, that have cut the interest rates on some of their mid-range loans, and this means that consumers could potentially get a far better deal on their borrowing.
At this time of year there are often many people who are thinking about taking out a personal loan. In some cases this is so that they can consolidate their existing debts, including debt that has been accrued on credit cards and overdrafts over the Christmas period. Whilst the Bank of England base rate is still at its all time low of just 0.5 percent the rates being charged on personal loans have been rising.
However, over recent weeks a price war on personal loans appears to have erupted amongst lenders, and this means that those with good credit could find that they are able to cut the amount that they have to pay for their borrowing. The price war has made it essential for people that want to get a good deal on their borrowing to compare a range of loans and lenders before making any commitment. This is something that they can do easily and quickly online.
One industry official said: “With interest rates on some personal loans having come down now could be the ideal time to start looking for a loan. However, consumers need to bear in mind that rates may start to rise again, especially if the bank base rate increases over the next couple of months.”
Do you check the small print on personal loan agreements?
January 27, 2011
Most people are well aware of the importance of comparing the various aspects of personal loans before deciding which loan to take out. It is important for those that are considering a personal loan to look at areas such as the APR, the repayment terms, and the borrowing levels. You also need to make sure that the loan is suited to your needs, so you should make sure that you choose one that you qualify for in terms of eligibility.
However, whilst many people have become far savvier when it comes to hunting out the most appropriate, suitable, and affordable loans many do not realise the importance of checking the small print on the various personal loans that they may be considering. The small print contains some of the most important information about any loan or finance agreement yet it is one of the things that a huge number of people fail to compare or even read when signing a loan agreement.
At this time of year many people may be considering taking out a personal loan, as competition between lenders has been heating up, and a number of lenders have reduced the interest rates being charged on their loans. Cheaper rates on loans won’t last long, and are likely to generate a lot of interest amongst consumers who want a good deal. Whilst the increased competition and lower rates will come as good news for those that want to take out a personal loan, it does mean that choosing between the different loans available may become more confusing.
This is where reading the small print can make a big difference to those that are confused or uncertain over which loan they should take out. The small print provides a lot of important information about matters such as early redemption fees, charges, payment breaks, exclusions and restrictions, and more. Failure to read the small print could result in you paying over the odds over the term of your borrowing, or getting a loan that is not as flexible or suitable as it may appear to be.
You can easily compare the terms and conditions of loans via the Internet, so it is just as easy to compare this important part of an agreement as it is to compare things like the APR, repayment periods etc. It is also just as important to do this, so always take the time to look at the small print before you make your decision.
Parents may be offered unsecured loan to help with kids’ deposits
January 17, 2011
These days first time buyers face a tough time when it comes to getting onto the property ladder. Apart from the high property values that they have to contend with there is also the fact that lenders are looking for huge deposits, which most young first time buyers simply don’t have.
In some cases parents are able to help their kids with a deposit, which allows that to get their foot onto the all important first rung of the property ladder. However, there are also parents that would like to help their kids to pay a deposit towards a home but simply don’t have the cash to do so.
One company, Hitachi Capital, thinks it may be able to help. The financial service group has got together with the house builder, Barratt Homes, in order to offer what it believes to be a solution. Some parents may be eligible to borrow £50,000 on an unsecured basis from the lender, which they can then give to their kids to help them with a deposit towards their first home.
However, there have been mixed reviews to the ’solution’ from many consumers, many of whom believe that this is just another scheme by lenders to increase borrowing again in what has become an already fragile financial climate.
One industry official said: “Parents keen to help their children with a deposit, but who don’t have spare cash available, could find this is the solution. The advantage of an unsecured loan is that it is separate from the mortgage, where your own loan-to-value is so important. The loan rate is competitive, plus payments are spread over 12 years. It is good to see innovation in the sector, with developers and lenders working together to find solutions to the problems facing first-time buyers struggling to get on the housing ladder.”
Loan rates drop to two year low
January 8, 2011
Over recent years the rate of interest charged on personal loans has been rocketing, even thought the Bank of England base rate has been at its all time low of just 0.5 percent for nearly two years. However, just as speculation has started to increase over when the base interest rate will rise lenders have started reducing the interest that is charged on their mid-range loans.
The rate of interest being charged on loans of between £7500 and £15000 is said to have fallen to the lowest level in over two years, with the last time the rate was as low as it is now being November 2008. This will come as good news for the many people that may be thinking about taking out a personal loan for purposes such as consolidation or to make purchases, as it means that they can enjoy an average rate of as low as 7.3 percent, which is the rate available from banking giant Santander.
A number of lenders have dropped the rates being charged on their £7500-£15000 loans, and this is due to increased competition in the market. However, the interest rates on smaller loans such as £3000 or £5000 is said to have increased in the past two years, which means that some borrowers may find that they are better off taking out a slightly larger loan so that they pay far less in the way of interest.
Some are concerned that the rates are being targeted at existing customers by some lenders.
One official said: ‘It’s welcome news for customers to see loan rates falling at long last and from some of the largest providers in the market. It’s a shame that the rate cutting has, apart from Tesco and M&S Money, been targeted at existing customers only. The other downside is that lower interest rates are not on offer for smaller borrowings, so for anyone looking to borrow a sum of say £2,000 to £3,000, the interest rate will be well into double figures and in some cases pushing 20% APR.’
Trading Standards warns over loan sharks
December 2, 2010
Officials from Trading Standards have issued a warning to consumers to steer clear of illegal loan sharks, highlighting the dangers of taking out an illegal loan with one of these unscrupulous lenders. With the run up to Christmas many consumers may be desperate for money to find their Christmas purchases, and with the traditional lending market as restricted as it is many may be tempted to turn to loan sharks.
Officers from Trading Standards visited Barton recently to warn about the dangers of taking out loans from illegal loan sharks. It is thought that around 300,000 households in the UK use loan sharks, and in some cases the lenders have resorted to physical violence and more in order to get the money back from those that have borrowed it, usually with horrendous sums of interest on top.
Trading Standards officers decided to be more proactive because figures have shown that 20 percent of those taking out loans from a loan shark do so in the run up to Christmas. They wanted to make it clear that people need to avoid these loan sharks at all costs. They have issued a hotline number for consumers to contact officers in confidence with regards to illegal loan sharks.
Many people have had their lives ruined as a result of borrowing from loan sharks, with many having to cripple themselves financially in order to repay the money and others suffering the mental and physical scars of being unable to make the repayments.
One consumer said: “It would be very very easy to go to a loan shark because when you’ve got nothing and they’re there saying: ‘Oh come on, you can have this £200, it will see you, just to get food and things’ you’re going to say yes.”
Consolidate your loans for the New Year
November 29, 2010
Like many people you may already be thinking about your New Year’s resolution for 2011, and there are many people that will be gearing up to sort out their finances in the New Year following a difficult and turbulent year. Starting the New Year afresh in terms of your finances can be very inspiring, but this involves being organised enough to get everything sorted out as soon as you can, so that by the time 2011 kicks off your finances are as organised as they can be.
One way in which you can do this is by looking at all of your debts and financial commitments to see whether you can not only reduce the amount you pay but also ease the hassle associated with repaying a range of debts. Debt consolidation is one way in which you can do this, and every year many people consolidate their debts to ease their finances and reduce their outgoings.
It is well worth starting your search for a suitable and affordable consolidation loan as soon as possible, as this will give you time before Christmas and New Year to get your loan sorted, get your existing debts paid off, and start afresh in 2011 with a new streamlined budget.
When you consolidate your debts you basically use a consolidation loan to repay your smaller existing debts, and you replace them with one larger debt. This will enable you to reduce the number of payments that you have to make each month, as you will only be making one repayment instead of several. It will also reduce the amount of money that you have to pay out each month, as you can get a low interest consolidation loan with repayments that are lower than the combined amount from your existing loans.
One of the reasons why it is advisable to look for a consolidation loan now is that loan rates have been coming down over recent months following a long period of interest rate hikes, and many experts believe that these rates will start to increase again soon. This gives you the perfect opportunity to get a lower rate loan before rates start to increase again.
You can search online for a low rate consolidation loan, and you will find plenty of choice and some good deals as long as you have a decent credit rating. Once you have consolidated your debts you can focus on repaying your one loan off rather than worrying about a variety of debts and repayments.
Reducing the cost of your personal loan
October 29, 2010
If you are thinking of taking out a personal loan for whatever reason you need to first determine how much you can realistically afford to repay each month, as this will give you an idea of how much you can afford to borrow and what sort of repayment terms you should be looking for.
In the current climate most people cannot afford to pay more than they have to, and most of those that take out loans are hoping to keep the costs down as much as possible in order to ensure that they do not overstretch their budgets. In order to keep costs low when taking out a personal loan there are a number of things that you should bear in mind.
First of all don’t be tempted to take out more than you need, as all this will do is push your repayments up, and you will probably end up wasting the excess cash that you didn’t really need. Work out exactly how much you need to borrow and then stick to that amount.
Make sure that you compare a range of loan providers, as the interest rates on personal loans can vary widely from one provider to another, so you may find that there are big differences in the rate that you will be charged. Another thing you need to look at when you compare loans and providers is the repayment period that is available. The longer your repayments the less you will be paying each month, as you will be spreading the loan over a longer period - although do bear in mind that you will pay more in interest over a longer period.
Of course, it is not just new loan customers that are looking to reduce their repayments due to financial difficulties - many people that have existing loans may also be looking to reduce the amount that they pay, and there are a number of solutions for those that want to try and reduce their existing loan repayments.
One potentially effective solution is to take out a low rate consolidation loan over a longer period of time and use it to pay off your loan, plus any other loans and credit cards that you are paying. This can help you to reduce the amount you pay out each month and cut the number of debts and creditors that you are dealing with.
Another option is to contact the lender, explain your financial situation, and ask if you can extend the term of the loan to reduce the repayments or simply make lower repayments for a period of time.
Consumers wary about taking out loans
October 28, 2010
It has been reported that consumers are becoming increasingly cautious about taking out loans, despite the fact that many people are struggling with their finances and many could use the money for work around the house, to consolidate debt, make purchases, or even to fund the up and coming Christmas period.
The global financial crisis and the recession has really taken its toll on household finances over the past couple of years, and many have struggled to make their budget stretch far enough. This has resulted in people turning to their credit cards, overdrafts, and even high interest loans to tide them over, but consumers are growing increasingly cautious about taking out loans.
Lenders have seen the appetite for personal loans falling over recent months, and although many people have wiped out their savings in order to make ends meet many simply won’t take the risk of getting into any more debt. The same has happened with mortgages, with many reluctant to take out a mortgage in the current climate, which has resulted in property prices falling due to lack of interest from buyers.
The recession left many people out of work, and although the recession is officially over many are still concerned about the security of their jobs, which is why so many people are so keen to steer clear of taking out new finance.
On top of this the recent Spending Review from the coalition government has made people even more wary about taking on new loans, with the huge cutbacks likely to affect many jobs. This has once again increased fears amongst consumers, who are now fearful of losing their jobs due to the cuts in the public sector and the possible knock on effect in the private sector.
Workers becoming more reliant on payday loans
October 21, 2010
According to a recent report workers are becoming more and more reliant on payday loans to get them through the month, with many finding it difficult to make their finances stretch far enough without turning to these loans. Whilst payday loans can be useful on occasion those that are using them regularly can end up paying a fortune in interest, which is something that concerns many industry officials.
The interest rates on these payday loans can reach an astonishing 2700 percent a year. Officials have said that these loans are effective for occasional use, as they eliminate the need to cash strapped consumers to turn to loan sharks. However, a rising number of consumers are using these loans and then rolling them over from one month to the next, which is resulting in crippling interest charges.
Officials from Datamonitor said that the situation is set to get worse, with the number of people using these costly short term loans set to triple over the next five years. £1.2 billion was borrowed through these loans in 2009, but the research by Datamonitor suggests that this is set to increase to between £2.7 billion and £3.5 billion by 2014.
The increase is likely to be fuelled by changing employment patterns, with the government cutbacks and the economic downturn leaving many people struggling to make ends meet. Many of these lenders do not carry out credit checks, and the loans are available quickly, which has made them increasingly popular amongst consumers who are able to prove that they are working.
Daoud Fakhri, analyst at Datamonitor, said: “There has been an increase in the number of people working part-time and by the hour which has meant that there’s been a greater fluctuation in pay, leading to cashflow problems for many consumers.”
Businesses still finding hard to get finance
October 15, 2010
It has been reported that many businesses in the UK are still finding it very difficult or impossible to get a loan. A survey was recently carried out the results of which showed that over a third of companies said that over the past year they had found getting a loan more difficult.
In total around 38 percent of firms said that they had found it more difficult over the past year to get a loan, and officials believe that the figure will come as a shock to government officials, who have been taking measures to try and get banks to start lending to businesses again and subsequently strengthen the economy.
The 38 percent of firms in question said that they believed it was more difficult to get a business loan now than it was a year ago, when the country was still in the depths of recession. Only 9 percent of respondents to the survey said that they thought it was now easier to get a loan than it was a year ago.
The survey results do seem to indicate that things have recently started to improve, as only around 14 percent of respondents said that getting a business loan had become more difficult in the past quarter. One official said that the problem was nevertheless a worrying one, and was not helped by banks’ bad debts.
He said: “This is an alarming percentage of companies who are actually saying that access to bank loans is still worsening.”
Referring to banks’ bad debts he added: “This is putting the banks in a bind and the net effect is they cannot meet the growing demand for finance from UK businesses. Small businesses aren’t just making this up. There is a real problem.”
Personal loan rates have rocketed
October 7, 2010
Over the years many people have taken out personal loans for all sorts of reasons, and until the onset of the global financial crisis many people were able to low rate personal loans with relative ease, as lenders were keen to lend money and were offering tempting interest rates in order to try and entice borrowers and keep head of rival lenders.
However, the financial industry has changed radically over the past few years with the onset of the global financial crisis and the recession, and these days getting a personal loan is nowhere near as easy as it was. Lenders are now being far more restrictive when it comes to lending, and are extremely cautious over who they will lend to.
Another problem that borrowers now face when looking for a personal loan is the higher rates of interest that lenders are charging. Despite the fact that the base interest rate has now been at its all time low for nineteen months in a row, standing at just 0.5 percent, personal loan rates are said to have increased over the past couple of years.
Research was carried out recently by Sainsbury’s Finance, and officials from the firm said that it was becoming more and more difficult for UK consumers to get an affordable personal loan. The figures released following the research showed that since 2008 personal loan rates had increased by 17 percent.
According to the results the average personal loan interest rate in 2008 stood at 10.67 percent, even though the base rate was much higher than it is now. However, despite the base interest rate being at its all time low of 0.5 percent now, the average personal loan rate has now increased to 12.45 percent.
Secured or unsecured – which is the best loan option?
September 14, 2010
When it comes to getting a loan there are a number of different options available to consumers, and the main two categories that are available are secured and unsecured loans. These loans are suited to different needs and circumstances, and it is important for consumers to ensure that they choose the right loan for their needs and their circumstances.
The two types of loans are very different in terms of the amounts available to borrow, the repayments terms, and even the rates of interest charges. The risks involved with these two types of loans are also very different. With unsecured loans there are no risks involved in terms of collateral, which is names the home of the borrower. However, this is not the case with secured loans, which are usually secured against the home.
These days those that have bought their properties over recent years cannot opt for a secured loan because they do not have the equity required in their homes. This means that their only option is to go for an unsecured loan, which does not require any collateral. On the other hand those that are homeowners with a reasonable level of equity in their homes may find that they have the option of either a secured or an unsecured loan.
In order to get a secured loan you will need to prove that you have the necessary level of equity in your home, which is the balance between the amount that you owe on the property and the amount that it is worth. Secured lending has been severely restricted since the global credit crisis, so it is worth bearing in mind that the choice of loans may not be as great as it was several years ago.
On the other hand if you are looking to get an unsecured loan you should bear in mind that you will generally need to have good credit to get this from a traditional lender. Again, the choice of loans is not as great as it was in years gone by due to the financial climate, but there are still some competitive deals available, especially on loans for £7500 or more. The cheaper unsecured loans for £5000 charge higher rates of interest so it is important to work out whether you will be better off opting for a smaller loan with a higher rate of interest or a slightly larger loan with a much lower rate of interest.
Questions you should ask yourself before you apply for a loan
August 27, 2010
Taking out a loan is often a big commitment for many people, and whether you are taking it out over twelve months or five years it can be a daunting thing to be stuck with a financial commitment that you could ruin your financial future if you do not stick to it.
There are many different loans available these days, and these can prove ideal for those that want to make a big purchase, pay for a one off luxury, or fund a special event amongst other things. However, before committing to a loan it is advisable to ask yourself a number of questions to determine whether you should be taking out a loan and if so what sort of loan you should go for.
How much can you afford to pay each month? You need to ensure that you go through your outgoings with a fine tooth comb so that you can see how much disposable income you have left to put towards a loan repayment each month. If you feel that spending anymore each month would be over stretching your budget then think twice before you apply for or commit to a loan, as you could run into problems with the slightest change in financial circumstances.
Is your credit good enough for a loan? Now more than ever lenders are very careful about who they lend to, and most will be keen to see that applicants have been responsible with their finances in the past. They will be able to determine this from the past credit history and current credit score of the applicant, and therefore by looking at your report before you apply you will be able to see what the lender will see when conducting a credit check.
How long do you want to pay over? When you take out a loan there will usually be a choice of repayment periods, ranging from a year to seven or even ten years - sometimes more depending on the type of loan taken. You should ask yourself what sort of period you want to pay over, but bear in mind that the shorter the repayment period the higher the monthly repayment.
How much do you need to borrow? It can be very tempting to borrow more than you actually need, but always remember that whatever you borrow you will have to repay with interest. Therefore try and stick to the amount that you need rather than going overboard and borrowing extra only to fritter it away.
Consumer demand for loans and credit falls
August 26, 2010
It has been claimed in a recent report that consumer demand for loans and credit has fallen in the last twelve months, with officials claiming that the lower demand for credit amongst consumers is a sign of the continued economic uncertainty and low confidence levels amongst consumers.
The report was released by the Finance & Leasing Association, which claims that the take up of finance has fallen because consumers still have little confidence in the economy despite the recession being over and signs of recovery of various markets. Many are still said to be concerned over job security, which is also knocking confidence levels.
The FLA has released data showing that in the twelve months leading to June of this year consumers used around 8 percent less credit than in the previous twelve months. However, whilst the take up of credit was lower in the last twelve months than the previous twelve months many people are still said to be using loans, credit cards, overdrafts, and other forms of finance.
In the second quarter of the year FLA members are said to have lent consumers £12.5 billion, and consumers have used the money for a range of purposes, such as buying vehicles, paying for holidays, and even for every day entertainment and eating out.
Fiona Hoyle from the FLA said: “This month’s figures suggest that consumers are uncertain about the economy. It may be that they are waiting to see the impact of public sector expenditure cuts on disposable income before making any long-term repayment commitments on credit. The statistics show that the credit market is still weakened. Last month, the Government announced a review of consumer credit and personal insolvency to take place in the autumn.”
Loans being taken to pay for surgery
August 5, 2010
According to a recent report a rising number of consumers in the UK are taking out personal loans in order to pay for surgery. With many trying to cope in a society where the glossy magazine show photos of apparently perfect men and women the pressure is on the general public to try and look good, even if it means making surgical changes.
Having surgery such as cosmetic surgery can be very costly, and for many people the only option is to borrow the money to have the surgery carried out. Figures that were recently released have shown that a significant amount of money has been borrowed to pay for surgical procedures by those that did not have the money to make payment upfront.
Whilst the recession has caused a range of financial problems for many consumers figures suggest that many people are still prepared to find the means to pay for cosmetic surgery even if this means getting into debt. Personal loans have become an effective option for those that need to raise the money for cosmetic surgery, and there are a number of options and choices available.
Figures have been released by the British Association of Aesthetic Plastic Surgeons (BAAPS), and the data showed that in 2009 there were over 36,400 surgical procedures, which reflected an increase of 6.7 percent compared to the previous year. The Harley Medical Group also released data showing that the surgical procedures had increased over this period.
An official from Sainsbury’s Finance stated: “Although the majority of personal loans are taken out for the usual domestic reasons such as home improvements and buying cars, a significant number, even in today’s economic climate, are used to fund more unusual expenditure such as cosmetic surgery.”
Why use the internet to find a loan?
July 29, 2010
Finding a loan in the past was often a troublesome and inconvenient process, and for many people involved making numerous calls, sending in forms and documents through the post, and having to visit various offices and branches to see lenders. However, over recent years the process of both finding and applying for a loan has become far easier, faster, and more convenience, largely thanks to the internet.
Finding a loan these days is very easy, and can be done from the comfort and privacy of your own home, so in many cases you will not even have to speak to anyone or see anyone involved at the other end in order to get your finance approved.
A huge number of people now use the internet to get loans and other forms of finance, and this method of finding and applying for loans is beneficial in many ways, which is why it has become so popular. A huge number of major banks, lenders, and financial institutions now operate online, which means that those using the internet to get their finance will have enormous choice from a vast array of reputable lenders.
One of the hardest parts about finding a loan is to compare different loans, lenders, and deals, and if you are using the phone to arrange your loan this can be very time consuming. However, with the Internet you can quickly and easily view and compare a vast range of deals from a variety of lenders with the touch of a button, which provides huge convenience for those with busy lives.
Another great thing about applying for loans online is that you will not have to worry about lengthy phone calls, as you can get the information you want, correspond, and make your application via the computer without having to make any calls, send any paperwork off, or go in and see anyone.
You can boost your chances of success when you use the internet to find a loan as far as finding a great value loan is concerned, as the choice of loans is huge and it is extremely easy and quick to browse and compare loans from a range of lenders in order to find the most suitable and appropriate one. You will find that there are many different deals that are on offer online, and you can also quickly determine the suitability of each of the loans before you make your application.
Finding a suitable personal loan
June 21, 2010
Whilst the financial markets in the UK have been very strained over the past couple of years due to the financial crisis and the recession there are various reports that claim the sector is easing up a little now, which means that the availability of loans for consumers may increase over the coming months. People may be looking for personal loans for a wide range of reasons, from consolidating other debts that they may have accrued to making a large purchase or simply paying for a well deserved holiday.
Whatever your reasons for looking for a personal loan it is important to remember that the costs can vary, and this will be based on your own personal and financial situation as well as on the lender that you go through. The interest rates charges on personal loans can vary widely, and whilst the best rates are generally only available to those with very good credit it is still important to shop around to ensure that you get the best deal possible on your loan.
In order to enjoy peace of mind when you take out a personal loan it is a good idea to ensure that the lender you go through is regulated by the Financial Services Authority, as this ensure that you have some sort of consumer protection in place rather than risking going through an unregulated lender. It is also very important to compare different personal loans and look at the different aspects of the loans to make sure that you get the one that is right for you.
A personal loan can be a fairly long term financial commitment and it is therefore important to get it right first time. One of the major things that you need to look at when you compare personal loans is the APR that the lender charges on the loans. Remember, when you see the lender advertise a ‘typical APR’ this is the amount that the majority of its customers get and not necessarily the rate that you will get, as this will depend on your circumstances.
Another thing to compare is the repayment periods available on different personal loans, as this could have an impact on the amount that you repay each month. If you want to keep your repayments as low as possible then look for a loan that offers longer repayment periods, as this will allow you to stretch your borrowing over a longer period of time thus benefit from lower monthly repayments.
Consumers can take opportunity to consolidate debts
June 3, 2010
Over the past couple of years many consumers may have found themselves getting deeper into debt, with high interest loans, credit cards, store cards, and more. However, the restrictions on lending that stemmed from the global financial crisis has made it difficult or impossible for many borrowers to do anything about their high interest debts such as switching to a better deal.
Over recent months, however, the financial sector has been easing up, with lenders relaxing their rules to some degree. This has made it more feasible for those with high interest debts to think about consolidating their debts into one lower interest loan.
By consolidating debts consumers are able to reduce the overall amount of interest that they pay, and can also dramatically reduce their monthly repayments. With lenders easing up on borrowers to some degree this could be the chance that many have been waiting for to consolidate their debts and benefit in a number of ways.
For most people reducing their monthly outgoing at the moment is important, and consolidation is something that can help borrowers to do this by wrapping all of their various debts into one low interest loan. It also means that borrowers do not have the hassle of dealing with a range of different creditors, and only have one loan and one creditor to deal with.
One finance professional stated: “It has been difficult for people that have waned to consolidate their debts for the last couple of years, as lenders have been far more restrictive with their lending. However, with things easing up somewhat now could be the time for those that want to reduce their outgoings and streamline their finances to get all of their debts wrapped into one.”
What to look for when searching for a loan
May 14, 2010
Whilst most people can ill afford to get themselves into debt these days there are still those that will need to take out a loan for one reason or another, whether it is a personal loan to pay for one of a variety of purchases or whether it is a mortgage loan for the purchase of a home.
Getting a loan over the past couple of years has become increasingly difficult, and this is because lenders have become increasingly restrictive when it comes to lending money. However, there have been signs that things are easing in the financial markets, and this means that banks may be easing up a little on their restrictions, although things will not go back to the days of easy credit seen before the credit crisis.
Consumers that are looking for a loan should always ensure that the compare the different loans that are available, not only to get the best rate and deal possible but also to ensure that they get a loan that is suited to their needs and circumstances. There are a number of factors that you should look at when looking for a loan, and this includes:
Rate of interest on the loan: You should always compare the interest rates charged on different loans, and these can vary based on the type of loan that you choose and the lender that you go with. Remember, whilst the base rate may be at its lowest level in over three centuries banks are still doing their best to recoup losses through higher interest rates, so taking the time to compare rates could provide you with big savings.
Repayment periods available: You should make sure that you check what repayment periods are available with the loans that you are considering, as this will determine how much you will have to repay each month. Those on a tighter budget may need to opt for a longer repayment period even though this may mean paying more interest, whereas those that can clear the loan more quickly can save themselves interest by choosing a shorter repayment period.
The small print: Always check the small print with any loans that you are considering, as there could be very important details in there. This could include a variety of information from taking payment holidays if things get tight to any set up fees, penalty fees, and restrictions.
Lenders to continue being picky over who they lend to
April 13, 2010
Over the past couple of years getting finance of any sort has become increasingly difficult and this is because of the financial crisis and the recession, both of which have created havoc in the financial sector and have caused huge problems for consumers. Getting any sort of finances, such as credit cards, loans, and overdrafts, has become increasingly difficult over this period.
However, the recession is now over and the economy is slowly getting back on its feet, and this has been coupled with improvements in the financial markets with lenders being a little more relaxed about lending money, or so reports would have us believe. However, whilst some people may find it easier to get finance this will certainly not be the case for everyone.
Whilst some people may now find it a little easier to get credit lenders are using far tighter credit scoring systems than they were prior to the financial crisis, and this means that things will not be going back to the days of easy credit where even those with damaged credit ratings could find it relatively easy to get a loan or other type of finance.
The Bank of England has recently stated that whilst the availability of mortgages is set to remain steady the availability of personal credit such as loans and overdrafts will be far more restricted. The central bank believes that this will be the case for some time to come, and this means that those with a less than perfect credit rating could find it extremely difficult to get any form of personal finance.
A survey has suggested that over the coming few months unsecured credit such as loans and credit cards will only be available to what has been described as high quality borrowers, which means those with high credit scores and good credit histories.
However, on a more positive note the Bank of England has confirmed that lending to businesses does appear to have increased, including increased lending to the commercial property sector - possibly the result of the £200 billion that the government has pumped into the economy as part of the quantitative easing programme.
The Bank of England stated: “Lenders reported that the increase in credit availability had been supported by slight improvements in their funding costs and by an improved economic outlook for businesses.”
Many businesses turned down for loans by banks
March 17, 2010
It has been revealed in a recent report that many businesses in the UK that have needed financial aid from their banks have been getting turned down, as banks continue to clamp down on their lending. Read more
Warning over predatory lenders over Christmas and New Year
December 24, 2009
Warnings have been issued by industry experts to consumers in the UK who might be thinking about taking a loan over the Christmas and New Year period to tide them over. Many desperate consumers who do not have the cash available to go out, entertain, make purchases and the like over the festive season may decide to turn to predatory lenders, who often prey on the more vulnerable people that have debts and little in the way of income. Read more
Further controversy arises over PPI
September 28, 2009
Over recent years PPI, or Payment Protection Insurance, has been at the centre of heated controversy and regulation changes. This insurance is a form of protection that is offered to consumers taking out finance such as credit card, loans, and the like, and the idea behind the cover is that if the policyholder is unable to make repayments for a specified period of time due to sickness, redundancy, or injury, the policy will then meet these repayments up to a certain period of time. Read more
Lenders told to stop selling single premium PPI right away
June 23, 2009
It was recently reported that regulators had brought in a ban on the sale of single premium Payment Protection Insurance from lenders, with the ban officially coming into force in October of next year. Read more
Industry should learn from reckless lending
June 13, 2009
A report that was released earlier this month has blamed the ongoing financial crises on reckless lending, and has claimed that lenders should learn by further restricting their lending regulations to ensure that this sort of problem does not arise again in the future. Read more
Increases on loan rates
January 5, 2009
According to industry officials the interest rates being charges on many personal loans have been rocketing over recent months, with many loans charging more than double the base interest rate, which has fallen to just 2 percent over the past couple of months. Reports suggest that the margin between the base rate and the average interest rates on personal loans has increased to more than 5 percent. This has resulted in many consumers paying way more than they should for borrowing by way of a personal loan. Read more
Bad credit consumers being targeted with high interest loans
December 17, 2008
In the current financial climate, with the banks in turmoil and lending highly restricted, most are under the impressions that getting any form of finance with a bad credit rating is nigh on impossible. However, a recent report has suggested otherwise, claiming that some consumers with bad credit are actually being targeted by lenders who want to try and make them take out loans with extremely high rates of interest attached. Read more
Warning on 0% interest rates
November 5, 2008
A leading economist has recently stated that the base rate in the UK may have to fall to 0% in order to try and get the financial markets and the economy back on a stable footing. The warning comes as the economy races towards recession. Charles Goodhart, a founding member of the Bank of England’s Monetary Policy Committee, said that the base rate was set to fall aggressively. He served as a member of the MPC between 1997 and 2000, and is now professor emeritus of banking and finance at the London School of Economics. Read more
Massive fine for A&L over PPI
November 3, 2008
The Financial Services Authority has come down hard on one lender over the mis-selling of payment protection insurance, or PPI, fining it a record £7 million. Following investigations the UK’s financial regulator has fined the lender for three years of mis-selling the controversial payment protection cover with its financial products. Read more
Rise in loan costs due to PPI crackdown
October 9, 2008
According to a recent report the ongoing crackdown in relation to Payment Protection Insurance, or PPI, on loans has resulted in an increase in costs and interest rates for those taking out personal loans. Officials have said that lenders have been looking at other ways to make money on loans since being warned about mis-selling PPI by UK financial authorities, and therefore personal loans have become more expensive for consumers. Read more
Northern Rock borrowers running into financial problems
October 5, 2008
Recent research has suggested that Northern Rock mortgage customers may be running into financial problems at a far faster pace than other borrowers, with repossession figures showing that a large proportion of homeowners that have been losing their homes are Northern Rock borrowers. The research was carried out by Standard and Poor, and indicated that one in every thirteen repossessions was a Northern Rock homeowner. Read more
Level of borrowing on personal loans decreasing
September 5, 2008
Recently released figures have indicated that the level of borrowing on personal loans has been falling, as funding for both mortgages and unsecured loans continues to dry up. Officials from the price comparison service uswitch.com claim that the ongoing financial crisis in the UK’s money markets is now affecting unsecured personal loans, with fewer people able or willing to take out this type of finance. Read more
Even wealthier borrowers are now struggling to repay their loans
August 27, 2008
A recent report has claimed that suffering severe financial difficulty is no longer a problem that affects only low income consumers. The report shows that financial difficulties are now even hitting homeowners living in fairly affluent areas, indicating that the current financial climate is also impacting heavily on the finances of those that would normally be considered to be fairly well off. Read more
FSA accused of making unfair assumptions by lenders
August 26, 2008
The UK’s financial regulator, the Financial Services Authority, has recently released a report that has criticised all lenders over the practices that are used when it comes to repossession proceedings. The regulator has said that if lenders do not buck up their ideas when it comes to their practices in relation in repossessions then it will take action wherever necessary, but lenders are annoyed that the regulator has tied all lenders to the same brush, and have said that the FSA should not have implied that all lenders are to blame for problems such as these. Read more
NatWest threatened cancer victim with repossession
August 22, 2008
A household name bank has been accused of being inhuman after it was found that it had threatened a cancer victim with repossession for failure to pay a loan. The seventy year old widow ran into problems paying her loan after being diagnosed with cancer, and she contacted the bank to see if they could help under the circumstances. Until then she had put her cottage up for sale, but had to take it off the market so that she could focus on her treatment. Read more
The benefits of an unsecured loan
August 20, 2008
There are many different loan types available these days, and consumers that are looking for finance can choose a loan that caters for their individual needs and circumstances. There are loans available for all sorts of people, including homeowners, non-homeowners, and even those with bad credit. It is important that you find a loan that is suited to your needs and your circumstances before you apply otherwise you risk wasting your time applying for a loan that you are not eligible, and also damaging your credit as a result of rejection. Read more
Searching for the right loan
August 18, 2008
In the past finding the right loan could be a difficult and time consuming process, even though credit conditions were pretty relaxed and there was a wide range of loan products on the market to choose from. These days things have changed for the worse when it comes to finding the right loan, with the global credit crunch resulting in such tight credit conditions that the whole process has become increasingly difficult and time consuming, particularly for those with less than perfect credit. Read more
Payday loan popularity increases
July 15, 2008
Over recent months many consumers have faced increasing difficulties when it comes to getting finance of any sort, with the global credit crunch resulting in far tighter lending criteria and far tougher credit conditions. Many of those looking for a loan have found that they are unable to get finance from a mainstream lender, particularly of they have damaged credit or are on low incomes, and according to some industry officials this is resulting in a larger proportion of consumers turning to payday loans in order to fund shorter term emergencies. Read more
Consumers warned to be careful about doorstep lenders
July 14, 2008
It seems that some doorstep lenders are enjoying a healthy year this year, as the global credit crunch continues to take its toll on households, and an increasing number of consumers, such as those with damaged credit or low incomes, find it increasingly difficult to get credit through mainstream lenders. The credit crunch has resulted in far tighter credit conditions coming into effect, and this has resulted in some people being forced to take finance from doorstep lenders. Read more
Competition Commission states still a problem with loan insurance sales
June 29, 2008
Officials from the Competition Commission have stated that there is still a serious problem with the sale of payment protection insurance, which is sold alongside loans and other forms of credit. This type of cover can be very costly, and in the past there have been a number of investigations, as it was found that many lenders and providers were selling the cover inappropriately. It was found that many were selling the cover to those that could never benefit from it, such as the retired or self employed, some were pushing consumers into taking out the cover even if they were reluctant, and others were adding the cover onto the finance deal without the knowledge of the borrower. Read more
Borrowing rates still rise despite base rate cuts
June 23, 2008
There have been three base rate cuts since December of last year, with the Bank of England reducing rates by 0.25% each time, taking the base rate from 5.75% to 5%. Over the past couple of months inflationary pressures have resulted in the central bank leaving rates on hold, despite concerns over the slowing economy. Inflation has now soared to 3.3%, which is way above the government target of 2%. Read more
DWP loses sensitive information
June 16, 2008
There has recently been another blunder, with yet another government agency losing sensitive data about consumers. The Department for Work and Pensions has admitted that it has lost hundreds of budgeting loan application forms, each of which contained a range of sensitive data about applicants, which could prove to pose a risk if the information falls into the wrong hands. A union official has branded the loss of this information as ‘outrageous’. Those that have recently made budgeting loan applications to the DWP have been advised to contact the agency as early as possible. Read more
PPI still being mis-sold to millions
June 10, 2008
Over the past couple of years there has been a major crackdown on the sale of Payment Protection Insurance to consumers that were not suited to the plans. However, according to consumer campaign officials and watchdogs, there is still evidence of large scale mis-selling of this type of cover to millions of people that can never actually claim on the insurance, and are therefore wasting their time. Read more
The base rate cut failed to benefit credit card customers
June 5, 2008
There have been three base rate cuts over recent months, with the Bank of England cutting the base arte by 0.75% between December 2007 and April 2008. Despite these rate cuts not all lenders have passed on the cuts to borrowers, and there has been a lot of controversy over lenders that have failed to pass on the base rate cuts to mortgage and loan customers, with many claiming that the lenders in question are adding to the slowing economy by leaving borrowers to struggle despite the base rate cuts. Read more
Save money by switching your loan mid-term
May 21, 2008
According to some industry officials many borrowers that have unsecured personal loans that they are halfway through paying off could actually save money by switching their loan provider and changing to a cheaper deal halfway through the loan term. Many borrowers have avoided this process in the past for one of a number of reasons, such as assuming that their existing lender would impose hefty penalty fees, thinking that the whole process is too much hassle, or not even realising that this could be done. Read more
Loan fraud cases increase due to credit crunch
May 20, 2008
According to a recent report the level of fraud cases in relation to loan and credit applications has gone up as the result of the global credit crunch, which has made it increasingly difficult for consumers to get the finance that they need without resorting to omitting information off their applications, lying on their applications, or exaggerating information such as income. Worryingly, some of these lies may not be caught out, as another recent report indicated that a number of lenders were failing to carry out adequate checks when it comes to finance applications. Read more
Bank of England under pressure to cut rates
April 12, 2008
The Bank of England has found itself facing pressure to cut interest rates again, following reports that house price growth had fallen to its lowest level in twelve years. According to officials from Nationwide house prices today are just 1.1% higher than they were at this time last year, and this reflected the smallest increase since 1996, when the Conservative Party was still in power. Read more
Interest rates on personal loans have been rocketing
March 31, 2008
According to a recent report the interest rates on personal loans in the UK have been rocketing over recent months, with consumers now having to pay significantly more for some loans than they would have paid a year ago, despite the fact that the base rate is now at the same level as it was a year ago due to recent rate cuts in December and February. Those taking smaller loans of around £1000 to £3000 are going to be hardest hit, as these are the loans that have seen the most significant rises. Read more
Personal loan rate cuts from Barclays
January 25, 2008
Over recent weeks a number of high street lenders have hiked up the interest rates on their unsecured personal loans, some by a whopping 4%, which has made borrowing far more expensive for consumers looking to take out a personal loan. Around nine lenders are thought to have upped the interest rates on their unsecured borrowing, many blaming the effects of the global credit crunch and the turmoil in the financial markets, coupled with increased bad debts. Read more
Credit crunch sends personal loan rates sky high
January 24, 2008
Borrowers in the UK could find themselves hit with extortionate interest rates on unsecured personal loans, as the credit crunch has resulted in a number of lenders raising interest rates by a significant amount, making unsecured borrowing far more costly for many people. Turmoil hit the UK’s financial markets over recent months, and was sparked by the credit crunch in the sub-prime sector of the United States. Read more
Car Loans
January 18, 2008
Having to put up with an unreliable vehicle that keeps letting you down and costing you money can be very distressing, but for many people the chances of being able to purchase a more reliable vehicle outright are slim to none, simply because of the cost involved. This is where car loans can prove invaluable, enabling consumers to enjoy the benefits of a newer and more reliable vehicle without having to find all of the money upfront. Read more