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.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.