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Unsecured loans holders 'won't benefit' from cut

Unsecured loans holders 'won't benefit' from cut

Category: Loans

Updated: 05/12/2008
First Published: 05/12/2008

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 It is now over 6 months old so the content may be out of date.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 unsecured loans are unlikely to be helped by the Bank of England's base rate cut, it has been suggested.

Personal finance site Fool.co.uk has found that just one in seven people believe the reduction will benefit them, with those between the ages of 18 and 25 least expecting a difference.

Yesterday the Bank's monetary policy committee (MPC) announced its third consecutive cut - bringing the rate from three per cent down to two per cent.

However, head of personal finance at Fool.co.uk David Kuo noted that it is "unclear" who will benefit.

"It won't assist people with fixed-rate mortgages, pensioners, savers, people with credit-card and store-card debts [or] first-time buyers who are hoping to get on the housing ladder," he said.

Commenting on the MPC move, consumer campaign group Which? called for the government to take action if banks fail to pass on the cut to their customers.

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