Low Interest Rates a Thing of the Past
While early 2006 found interest rates for UK secured loans looking great, the past year has made low interest rates a thing of the past. Why have these low interest rates taken flight? Well, it appears that the rates have risen four times in only the past year.
Yes, a year ago you may have been able to get a UK secured loan for somewhere between 4.5% and 5.5% interest, but now you can expect a much higher rate. Currently interest rates for secured loans will be between 6.1% and 8.5%, which is an astounding change from last years great rates.
The rise of interest rates could spell trouble for homeowners needing to refinance or those whose loans are getting ready to expire in the near future. No doubt they will be paying a great deal more in interest rates, which will result in their monthly payments being higher as well.
So, if you are interested in getting a UK secured loan, now is not the best time to do so, and you are going to be paying more for your loan with interest rates jumping so drastically in the past year. On the other side of the coin, people who have savings accounts are going to benefit with the jump in rates, so it may even out in the end.