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Secured loans holders benefiting from cuts?

Secured loans holders benefiting from cuts?

Category: Loans

Updated: 04/12/2008
First Published: 02/12/2008

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 It is now over 6 months old so the content may be out of date.
Banks have been urged to pass on interest rate reductions to borrowers.

Consumer campaign group Which? has noted that the London Interbank Offered Rate (Libor) has dropped by 1.77 per cent over the last month.

It explained that institutions have attributed their failure to reduce rates for secured loans customers to the fact that it is the Libor rate, not the Bank of England's base rate, that affects them.

But as this is now falling, chief executive at Which? Peter Vicary-Smith said that consumers should be seeing the benefit.

"If the Interest rate is cut again [this week], it will be even more important for banks to cut their rates and give consumers the break they deserve," he added.

Last month Which? urged people to check their credit file, in order to ensure it is accurate and potentially save significant amounts when applying for secured loans.

This followed findings that 16 per cent of those that had checked had discovered mistakes.

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