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Low base rate great for unsecured loans borrowers

Low base rate great for unsecured loans  borrowers

Category: Loans

Updated: 13/02/2009
First Published: 12/02/2009

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 It is now over 6 months old so the content may be out of date.

Consumers with secured and unsecured loans are set to benefit if interest rates remain low for a prolonged period of time, an expert has observed.

Chief economist at Lloyds TSB Corporate Markets Trevor Williams noted that the declining base rate could help to improve the economy, as it will encourage people to spend.

And he explained that those with outstanding debt - as well as those thinking of taking out new unsecured loans - should welcome any further base rate drop.

"It would be great ... if the cost of paying for a loan gets as low as it possibly can, because this is going to reduce your interest payments," Mr Williams remarked.

Earlier this week, Lloyds TSB Corporate Markets revealed that a growing number of consumers expect rates to be higher in a year's time, following the Bank of England's decision to lower the base rate to one per cent.

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