Borrowing has become cheaper, economist confirms - Loans - News - Moneyfacts


Borrowing has become cheaper, economist confirms

Borrowing has become cheaper, economist confirms

Category: Loans

Updated: 03/03/2009
First Published: 03/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The cost of borrowing money has become cheaper following the Bank of England's interest rate decisions, it has been claimed.

According to Trevor Williams, an economist at Lloyds TSB, borrowing money through products such as mortgages and unsecured loans has become cheaper, even if the full effects of the interest rate changes have not yet been fully absorbed by the economy.

"It has certainly reduced the cost of borrowing," he said, adding that "there is more money in people's pockets compared with where people were before these rates started to be cut".

However, Mr Williams stated that if the country's economy is still struggling then the Bank's decisions to lower the rate to the current level of one per cent is not having a "discernible effect".

The Bank of England's rate setting monetary policy committee will meet for two days this week to discuss whether the rate should be further reduced this month.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.