Rates for secured loans are becoming as competitive as unsecured deals
February 22, 2008 by admin
Filed under News, News-Loans
Homeowners looking for a significant cash advance can now choose from secured loan deals which are even more competitive than the average unsecured loan rate, financial experts have claimed. 
According to Moneyexpert.com, the average APR on a £15,000 unsecured loan is an estimated 8.44 per cent.
However, borrowers with the option of securing the loan against their property have been able to get interest rates as low as 5.9 per cent, almost 2.5 percentage points cheaper than the average unsecured loan rate on the market for balances of £15,000.
Sean Gardner, chief executive of MoneyExpert.com, said: “Historically secured loans were seen as something of a product of last resort.”
“But these days they are far more attractive to homeowners who are looking for a competitive rate of interest,” he added.
Findings from MoneyExpert.com reveal that demand has increased for secured loans in the past six months with an 85 per cent rise in the number of applications seen in the last quarter ending in January 2008.
Meanwhile, further research from finance experts have shown that 1.39 million have switched mortgage provider for a better deal in the past six months.
2006 lending hit record levels
January 18, 2007 by admin
Filed under News, News-Loans
Lending in the UK reached record levels during 2006, with the Council of Mortgage Lenders (CML) saying there was a 20 per cent rise on 2005.
In total, £346 billion was lent, with November proving to be the year’s most popular month for borrowing.
In fact, November was a record-breaker itself, recording the highest lending figures ever at £33.1 billion.
The huge lending figures have been attributed to a number of factors, including annual house price growth (around seven per cent) and increased house sales (14 per cent).
“The commentators who thought the housing market would crash in 2006 were wrong,” said Michael Coogan, director general of the CML.
“Last year the market proved itself to be in robust shape and we expect it to remain so during 2007.
“Going forward, many of the key drivers of the market remain positive. The economy is healthy, demand for housing is strong, and house prices continue to rise. As a result, mortgage lending this year is expected to be even higher than in 2006.”
Despite Mr Coogan’s positive outlook for the housing market during 2007, he does have a word of warning in light of the recent interest rate rises.
“The recent increases in interest rates might make many aspiring home-owners think twice about getting on to the property ladder, and we expect to see levels of activity dampen as the year progresses,” he added.
