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| Loans News - Last Updated Saturday 2nd August 2008 |
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Saturday 2nd August 2008
A report by the Moneyfacts website has found that 14 different lenders have actually increased the rates of interest on their loan packages over the last two months. Interestingly it seems as though Tesco and the AA have actually introduced tow rises during this period. So why are loan rates increasing as mortgage rates are falling?
There is a growing suspicion that many UK lenders are using the headlines surrounding the fall in mortgage rates to sneak in a number of loan interest rises. Many people have wrongly assumed that both rates of interest would be moving in the same direction with some new customers not even comparing rates in the market.
The main bulk of the increase seems to be in loans under £5,000 and the Moneyfacts survey found that someone borrowing just over the £5,000 limit would actually move into a lower rate bracket and be better off financially. However, with more and more people looking for the opportunity to consolidate their loans and reschedule payment timetables the historic benefits from this route have been reduced of late.
Those looking to address any debt issues which they have need to take professional advice and ensure that the arrangement they are considering switching to is in their best interest. |
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