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Secured loans holders 'need fair rates'

Secured loans holders 'need fair rates'

Category: Loans

Updated: 12/11/2008
First Published: 12/11/2008

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 It is now over 6 months old so the content may be out of date.

Secured loans customers are increasingly being forced on to their lender's standard variable rate (SVR), it has been found.

Moneyfacts.co.uk noted that some borrowers have had no alternative, as a lack of equity in their home has meant they have had to take the SVR at the end of existing deals.

As a result, around one in ten secured loans holders are currently on the plans.

Michelle Slade, analyst at the site, observed that many lenders no longer offer the rate to new customers because interest rate falls could lead to a surge in applications.

But she added that many are now cutting SVRs in line with the 1.5 per cent base rate reduction by the Bank of England, which could be good news for those seeking secured loans.

"Lenders have been quick to pass on rate increases, but are never as quick to reduce rates again. They now need to start playing fair and giving borrowers the relief they need," said Ms Slade.

The Bank of England's base rate is now at three per cent - the lowest it has been since the monetary policy committee was given independence.

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 Any products featured may be withdrawn by their provider or changed at any time.

 
 
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