Unsecured Loans ? Higher Interest Rates Predicted
Consumers looking for unsecured loans may find that the interest rates on the loans may start to increase as Payment Protection Insurance loan sales begin to drop.
A leading financial research website has found that a drop in the sales of Payment Protection Insurance has left lenders unable to pay for the loans, meaning that they have had to raise the interest levels on them.
The research site also said that a number of customers looking for loans have had to be turned away by lenders as they are becoming more discerning about who they give credit to.
A leading loan lender was reportedly turning away 60 per cent of their customers who had applied for unsecured loans and then annual reports were showing that companies were trying to better the quality of their business.
Throughout this research, the finance research website compared the unsecured rates now with the rates being offered last time the Bank of England’s base rate of interest was 5 per cent and then earlier in the year, the Bank of England’s monetary policy committee confirmed that they would be keeping the rate of interest at 5 per cent. This comes amidst warnings that the UK’s economy could start to slow down, with some even worrying that we could be heading for a recession which we last saw 18 years ago in 1990.
Other recent loan news has come from a debt management advisory firm who have advised homeowners, who need to pay back loans, that they could consolidate their repayments by taking out secured loans.
The company advised that homeowners with equity in their own home may have no other option but to enter into a debt management plan and consolidate their debts through a secured loan.
These comments come after the Bank of England explained that a slowdown in the economy was needed in order to pressures on prices and also wages. It was also added that lowering wages will have more of an effect on the credit crunch than customer spending does.
A drop in the sales of Payment Protection Insurance has left lenders unable to pay for the loans meaning that they have had to raise the interest levels on them.
A leading loan lender was reportedly turning away 60 per cent of their customers who had applied for unsecured loans .
A debt management advisory firm has advised homeowners, who need to pay back loans, that they could consolidate their repayments by taking out secured loans .