Personal loans – strike whilst the iron’s hot

Over recent years the cost of borrowing by way of a personal loan has been spiralling, and even though the base interest rate has been at a record low of 0.5 percent for the past two years personal loan rates have remained high, especially on loans of £5000 or less. However, recent reports have suggested that the cost of borrowing has been falling, which means that consumers may now be able to get a better deal on their borrowing.

However, some industry experts do not believe that the decreases in personal loan interest rates will continue, and that the trend could quickly reverse, with rates going back up again. It is therefore worth considering looking at personal loans now if you think that you may need to take out a loan over the coming months, as you may find that if you strike now you could get a fairly good deal but if you wait around loan rates may start to rise again.

It is especially important for consumers to compare personal loan rates now that the level of interest is said to be coming down, as it increases competition and boosts the chances of being able to get a loan that is competitive and affordable. However, if the base rate increases over the coming months or lenders start to put their rates up again due to the uncertain climate many could find that they have to pay far more for their borrowing.

The internet makes it easier to compare different loans and lenders, and this means that you won’t have to do to any unnecessary hassle in order to weed out the most competitive loans. You can browse and compare loans with ease via the Internet, and you will be able to see at a glance whether the loans available are affordable for you or not.

It is important to act quickly, as many experts think that loan rates will stop falling and could start rising again, which means that you could miss out on a far more competitive rate simply because you decided to wait a couple of months before looking for your personal loan.

The rates are said to have fallen in particular on loans of over £5000, so those considering taking out a larger loan could find that they can make a significant saving on repayments due to lower interest rates by looking for a loan now rather than later.

Tags: whilst, finance, base rate, unnecessary hassle, hassle

No movement in Bank of England base rate

It has been announced by the Bank of England that the base rate is to remain at its record low level of 0.5 percent once again, making this the eleventh month in a row where the base rate will have been at its lowest level in the history of the Bank of England. The decision comes just over a week after it was announced that the UK had finally joined other major economies by coming out of recession. Read more

Tags: bank of england base rate, interest rate, bank of england, base rate, inflation, economics, recessions

No increase in base rate again

For the ninth month in a row the Bank of England has decided to keep the base interest rate on hold, leaving it static at its lowest level in history, which is just 0.5 percent. The decision to keep the base rate so low has come as no surprise to most industry experts given the ongoing problems facing the economy and further threats of job losses. The announcement was made following the December Monetary Policy Committee meeting, which was held last week.

The Bank of England also announced that it would continue with its quantitative easing program to try and revive the economy, having announced last month that the plan was being extended to a total of £200 billion, reflecting an extension of a further £25 billion. Originally the maximum amount earmarked for quantitative easing had been £150 billion. No clue was given as to whether the scheme would be extended further next year.

Many industry experts have slated the quantitative easing programme, stating that it is clear that the plan is not having the desired effect on the economy but the government is continuing to use the programme to try and ease the economic problems. It is thought that when the current programme runs out in January the government will announce whether it plans to extend the scheme further.

In the meantime, an economist from Global Insight, Howard Archer, said that it was likely that the Bank of England would keep the base rate on hold at 0.5 percent until late next year, and even predicted that it could be 2011 before the base rate was increased. He said that fears over unsustainable recovery meant that it was far too soon for the government to think of policy tightening.

Tags: interest rates, Howard Archer, quantitative easing, Monetary policy, economist, inflation, The Bank of England

Lenders push borrowers into costly fixed rate deals

It has been claimed that some lenders have been trying to push their borrowers into costly fixed rate deals at a time when the base rate has been at an all time low of just 0.5 percent for the last eight months. Read more

Tags: fixed rate mortgages, Mortgages, move, base rate, low base rate, would make sense, financial

What is the Next Step for Borrowers and Savers?

With the recession in full swing in the UK and predictions of worse conditions to come, both borrowers and savers are wondering what they should so in the future. Small returns on investments are making it extremely difficult for savers to earn the money they were counting on for future needs, such as retirement. Read more

Tags: borrow money, bank of england, interest rates, base rate, save money, mortgage rates

No change in base rate for third month

For the past couple of months the base interest rate in the UK has been kept at its record low of 0.5 percent, and following this month’s Monetary Policy Committee meeting the Bank of England has announced that the rate will remain on hold for a third month. Read more

Tags: October, base rate, bank of england, money, record low

Interest rates remain on hold after May meeting

After the May Monetary Policy Committee meeting the Bank of England announced that the base interest rate was to be kept on hold at its all time low of 0.5 percent. Read more

Tags: interest rate, Economic policy, money, bank of england, interest rates, Central bank, lowest level, base rate

Pensioners losing most of their income from savings

For many pensioners having their life savings in a higher interest savings account has become an effective way to boost their pensions with additional income over recent years, with many enjoying a substantial boost to their pensions because of the monthly income they earned from the interest on their savings. Read more

Tags: recent years, Pension, base rate, pensioners, chunk, food

The pros and cons of the base rate cuts

Between 2006 and early 2007 many people were horrified as a result of the base interest rate increases which saw the base rate rise from 4.5 percent to 5.75 percent. Borrowers and homeowners found that their financial commitments went up considerably, although the rate increases came as far better news for other groups such as savers, who hoped to get better returns on their money as a result of the rate increases. Read more

Tags: Loans, savings, interest rates, Mortgages, bank of england, base rate

Five year low on savings rates

Following the series of base interest rate cuts that have been applied over recent months figures have shown that the interest rates on savings accounts have fallen to their lowest levels in five years. Read more

Tags: savings accounts, good returns, finance, bank, base rate, Financial services

Base rate at lowest in over three centuries

Following the most recent cut to the UK base interest rate the base rate has now dropped to its lowest level in over three centuries. Read more

Tags: rate movement, base rate, Late 2000s recession in Europe, economy, meeting, interest rates, Central bank, series

Will homeowners see any benefit from the rate cuts?

After a series of interest rate hikes between August 2006 and July 2007, which left many homeowners struggling to keep up with mortgage repayments because of the higher interest rates from banks, many were relieved to see interest rates plummet over recent months. In October of this year the Bank of England reduced the base rate from 5 percent top 4.5 percent, and a month later the central bank wiped another 1.5 percent off the base rate, taking it to just 3 percent. In December yet another 1 percent came off, which took the base rate to a fifty seven year low of just 2 percent. Read more

Tags: property market, mortgage rates, Savings and loan association, chancellor of the exchequer, great news, base rate

Will the rock bottom base rate help homeowners?

Over the past few months the Bank of England has been taking radical action with regards to the base interest rate. With the economy really suffering and heading for recession, and with consumer confidence at really low levels, the central bank was forced to do something to try and ease the difficulties that both consumers and businesses in the UK were facing. To the relief of many industry groups and consumers the Bank of England has taken unprecedented action recently to try and ease the situation, but this does not guarantee that consumers will actually be any better off. Read more

Tags: Mortgages, committee, base rate, interest rate, Macroeconomics, bank of england, consumers, rapid decline

Bank rate cut by a further 1 percent

The Bank of England has cut the base interest rate buy a further 1 percent in the third rate cut in as many months. The rate cut took place following the December Monetary Policy Committee Meeting, where it was decided by committee members that a further cut in interest rates was necessary in order to try and boost the flagging economy through increasing consumer spending. Read more

Tags: bank of england, interest rates, Monetary Policy Committee, base rate, Mortgages

High street to suffer as consumers try and save money

Although Christmas is just around the corner many High Street retailers are not getting too excited about the flurry of activity and more importantly the huge profits that will come rolling in, namely because this is something that is unlikely to happen this year. After a particularly gruelling year in terms of finances, with soaring living costs, rocketing bills, and sky high borrowing costs to deal with, many consumers are desperate to try and put some money aside, and to do this many will have to cut back on the cost of Christmas, and reduce the amount of money that they spend on presents, food, going out, clothes, and entertainment. Read more

Tags: Christmas spending, name, food, year, Electronic commerce, base rate, run, bank of england

Marked rise in repossession levels

A recent report has shown that the rise in repossession levels in the UK is resulting in around one hundred and twenty families a day being evicted from their homes. In the second quarter of this year it is said that one hundred and twenty families a day were losing their homes to repossession, which reflects a 70% rise compared to a year earlier. Furthermore, industry officials have predicted that this figure will continue to rise as the nation edges every closer to a deep recession and the global financial crisis continues to take a hold. Read more

Tags: Mortgages, point, repossessions, economics, credit, rate, base rate, day

Inflation at 4.7%

Recent figures have shown that inflation levels in the UK have soared even further out of control, rising from 4.4% to 4.7% for August. The government target for inflation is just 2% so the current rate of inflation is way beyond the target. The jump to 4.7% was higher than many industry officials had anticipated, according to recent reports. There is also speculation over how far inflation will keep on rising, with some senior officials predicting that it will hit 5% or beyond by the end of the year. Read more

Tags: increase, marked slowdown, Monetary Policy Committee, current rate, October

Demand for five-year fixed-rates ‘rises’

Demand has increased for fixed-rate mortgages lasting five years for the third month in a row, according to figures newly released by Abbey. Read more

Tags: Mortgages, director, mortgage, fixed rate mortgages, base rate

Tracker mortgages growing in popularity

Tracker mortgages are growing more popular than fixed-rate mortgages as a result of expectations that the base rate of interest will fall, it has emerged.

A total of 35 per cent of borrowers opted for a tracker mortgage last month, up from 33 per cent in January, according to new research from the Council of Mortgage Lenders (CML). This figure was up from 14 per cent a year ago.

Meanwhile, fixed-rate mortgages fell to their lowest level of popularity since March 2005.

“The trend away from fixed-rate products continues as expectations of further bank base rate reductions, probably starting this week, have increased,” commented Michael Coogan, director general of the CML.

The Bank of England’s Monetary Policy Committee will meet on Thursday (April 10th) amid predictions that the current base rate of 5.25 per cent will be reduced.

However, expectations of a cut in official rates have also prompted lenders to increase their rates on tracker mortgages.

The CML also reported that the number of loans for house purchase dropped by 3.5 per cent from last month to 49,200, the lowest quantity since records began in 2002.

Tags: lowest quantity, council of mortgage lenders, Thursday, Bank of England's Monetary Policy Committee, CML.The Bank, trend

Mortgage borrowers urged to “think carefully”

Following the Bank of England’s decision to keep the base rate of interest on hold, one expert has advised borrowers to consider the possible downsides of taking out a variable-rate mortgage.

Mark Blackwell, director of intermediary sales at Alliance & Leicester, said that while those with variable-rate mortgages may have “benefited” from the rate cut announced last month, further rate reductions may not be so forthcoming.

According to Mr Blackwell, under present conditions borrowers ought to “think carefully” about the negative aspects of “locking” into a variable-rate product, particularly as the Bank may choose to tackle rising inflation with a rate hike.

“Fixed-rate products continue to remain a wise choice for first time buyers, people moving house or refinancing,” he said.

As 1.4 million borrowers are likely to come to the end of their fixed-rate deals this year, a similar product may “help to manage the impact of higher monthly payments”, he added.

The Bank chose to maintain the base rate at 5.25 per cent yesterday, having reduced from 5.5 per cent a month earlier.

Tags: people moving house, yesterday, decision, director, base, base rate, mortgage

Interest rates frozen

Interest rates are to remain at 5.25 per cent after the Bank of England decided not to increase the rates further.

Last month the bank surprised everyone by announcing an increase of 0.25 per cent, but today’s decision had been widely anticipated.

The Bank of England’s Monetary Policy Committee (MPC) has increased interest rates three times in the last six months, as it tried to bring inflation rates under control.

Today’s decision to freeze interest rates will be welcomed by those who have a mortgage, but there are warnings that future rises are almost inevitable.

“Today’s MPC decision to maintain the base rate at 5.25 per cent will come as a welcome relief to borrowers, but many market analysts will view this latest decision by the Bank of England as a mere delay of an inevitable further rate rise,” said Mehrdad Yousefi from Alliance & Leicester.

“Inflationary pressures on the economy remain strong, including some above inflation pay deals, and they will play a key part in future base rate decisions.

“The consensus of opinion is that it is very likely that we will see another rate rise in the first half of 2007, so it is crucial that borrowers assess what impact any possible future base rate rises could have on their finances,” he added.

In January it was revealed that inflation was running at levels not seen since 1997 when the Bank took control of setting interest rates from the chancellor.

People borrowing money should be sure that they have the financial flexibility to cope with a sudden rise in interest rates.

Tags: Mehrdad, base, today's decision, england, pay, yousefi

No Evidence That Interest Only Mortgages Are Taken Out Under Pressure

Amidst concerns that many people may be taking out interest only mortgages rather than capital and interest mortgages simply because of the rising cost of house buying and the problems with affordability, a recent report has been published and has indicated that this is not actually the case, and it is not pressures relating to the affordability of housing in the UK that is resulting in some borrowers opting for the interest only mortgage.
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Tags: bank of england, Mortgages, interest rates, interest only mortgages, base rate