Low Interest Loan

Low Interest Loans on the Horizon for Many Borrowers

Bright Light — Sat, 27 Sep 2008 12:40:04 +0000

Low interest loans are one of the possible cures to the ailing financial system that is being discussed by banks and financial institutions. By being able to hand out very low interest loans, these companies would be able to restart the economy and give it a giant boost, especially for those individuals who are stuck with extremely expensive loans. By offering low interest loans, individuals would be able to take advantage of these financial products to replace the loans that they already have and save a tremendous amount of money. With the low interest rates and extremely friendly terms that these loans represent, it is easy to see that they will very quickly be helpful to those who are suffering from the interest rates that would be pay.

Low interest loans can make all the difference for individuals who are struggling to make ends meet. By reducing the rate by only a percent, low-interest loans can save families all manner of income and allow them to make their payments in a timely fashion. For those individuals who have gotten behind on their loans in the past, a low-interest loan can give them the incentive that they need to get caught up.

Low Interest Loans Coming Back

Bright Light — Fri, 29 Aug 2008 10:00:12 +0000

Although rate drops are not yet widespread, it does appear that low interest loans are on the way back. Consumers in desperate need of low interest loans may have to wait for a few weeks for the effect to trickle down, but recent figures indicate that the rates are starting to trend down. This is good news for those that are trying to either consolidate debt or refinance an existing loan into a low interest loans. Whether or not many banks begin to offer lower rates remains to be seen, but several have started to cut their rates and even lower their fees in an effort to remain competitive in the industry.

‘Staying on SVR is not a bad position to be in for some people because there is no penalty for staying on it and you can switch away any time without paying a fee,’ says Richard Morea of mortgage broker London & Country.

‘The people whom it may make sense for are those confident that rates will go down, those who are looking to move house and so don’t want to be tied into a new deal, and those who have no choice.’

Low Interest Loans Change

Bright Light — Fri, 22 Aug 2008 13:34:07 +0000

Low interest loans have gone through major changes over the past year and experts are concerned at the impact this could have on consumers. Many rely on low interest loans and cannot afford their payments if the rates continue to go up. For those already in trouble, a break and a return to low interest loans is vital.

Datamonitor financial services senior analyst Karina Purang says: “The consumer lending market has moved beyond recognition. Lending markets are currently beset by high market uncertainties with the ongoing credit crunch, falling house prices, rising arrears and repossessions and indebted consumers struggling to find credit.”

Citizens Advice Head of Consumer Policy Sue Edwards said: “We are concerned about the increase in mortgage arrears and repossessions revealed in the latest data from the Council of Mortgage Lenders released today. We are continuing to see high numbers of people coming to see us with mortgage and secured loan arrears. Yet in too many cases lenders are still not doing everything they can to help borrowers in trouble, piling on extra charges, not negotiating with borrowers to come to a workable solution over repayment arrangements and using court action as a first rather than a last resort.

Consumers Urged to Look Outside the Box For Low Interest Loans

Bright Light — Fri, 15 Aug 2008 12:44:25 +0000

Experts are reminding consumers that even though working with a broker can be helpful, they should still seek out low interest loans on their own. Not all lenders work with brokers and by failing to shop around, consumers may be missing out on low interest loans deals. The same is true for consumers that are relying on their favorite banks to offer them the best low interest loan, when in many cases, they will end up paying too much as a result.

Michelle Slade of MoneyFacts stated, “Particularly when shopping for a mortgage, customers need to make sure they do their homework in order to secure the best deal possible. Mortgage brokers do not have access to 100% of deals, so borrowers should make sure they are aware of what deals are available direct from lenders.

“The institutions are keen to tempt savings and current account customers through their doors and as a result have made switching as easy as possible. Current account institutions have switcher services which transfer your existing regular payments for you.

“The banks are not loyal to you, so why should you be loyal to them?”

Low Interest Loans May Return

Bright Light — Fri, 08 Aug 2008 12:31:33 +0000

There appear to be indications that low interest loans may be returning. Although the changes are not yet widespread, there are many banks that are starting to offer low interest loans again and there are high hopes that other banks will follow suit. Even though the Bank of England did not lower rates this week, many banks are finally taking that step on their own and bringing low interest loans back. The next few months will be telling as to whether this trend will continue or if rates will go back up as well as fees.

Richard Morea of broker London and Country said: “Banks are more willing to lend as rates in the wholesale markets have come down.”

Melanie Bien at broker Savills Private Finance, said: “With swap rates continuing to fall, the big lenders with strong balance sheets and an appetite to lend are likely to carry on reducing their fixed rates and some trackers.”

Bien added: “If you can afford to be wrong — that is, if rates rise you will be able to afford it — a tracker is cheaper, at least initially, and may make better sense in the long run.”

Low Interest Loans Still Elusive

Bright Light — Fri, 01 Aug 2008 08:50:50 +0000

Although a few banks have started to offer low interest loans, it appears as though most are sticking with their higher rates. Consumers are finding it increasingly difficult to get a low interest loan, and with inflation, it is becoming harder than ever to stay afloat. For those seeking a low interest loan, it may be a few years before they are available again.

Propertyfinder.com director Nicholas Leeming says: “Today’s inflation figures tell us how prices have behaved up to this point but most forces in the economy are now working to slow growth rapidly. The housing market has stalled as so few can get access to mortgages and the effects of this are now hitting the high street. This is already reflected in people’s attitudes - according to our research 71 per cent of people questioned in July think that economic growth is slowing dramatically.

“Inflation expectations should follow and come under control. It is essential for the health of the economy that the Bank continues to use a light touch to tackle inflation and does not increase base rates, otherwise it risks sacrificing the economy at the altar of short term inflation.”

Low Interest Loans from Families More Popular

Bright Light — Fri, 18 Jul 2008 09:57:59 +0000

The bank of Mum and Dad has suddenly become very popular as more people seek a way to get a low interest loan. Since banks are shutting down availability of low interest loans, few have many choices other than to go to their parents for help. This may cause problems down the road for families that are already stretched financially. However, until more low interest loans are offered, this issue could continue for some time.

Alison Green of Axa said: “The bank of mum and dad has so far been quiet on the issue of how it will deal with the effects of the credit crunch. But now it has come out and shown that teenagers have been hit hard.”

Sean Gardner of MoneyExpert stated, “While high street banks can hike interest rates and fees to deter customers’ requests for cash, parents can do very little to avoid the daily handouts and requests for larger loans from their children. Parents are being pulled in all directions - rising fuel and food prices, expensive remortgage costs, and the overall cost of borrowing are taking their toll. So it makes sense that eventually the downturn would affect children.”

Low Interest Loans Become Even Harder to Find

Bright Light — Thu, 10 Jul 2008 09:11:14 +0000

As banks continue raising their rates and adding fees, a low interest loan is becoming even more difficult for consumers to get. The fees attached to a low interest loan are starting to negate any saving benefits and for many, it is simply too expensive to try to get one of these loans at this time. Until banks start to offer low interest loans without excess fees attached, it may become almost impossible for many people to even find the right loan. Right now, for banks, it is all about limiting their risks and making more money to offset their losses.

Sean Gardner, director of MoneyExpert.com, said: “Such high mortgage application fees will come as something of a shock to many homebuyers. We’re just not used to these levels of charge. Anyone looking to remortgage or to buy a property for the first time will need to recalculate their options if they haven’t factored in fees.”

He continued, “Lenders are sick to death of risky borrowers and they won’t be taking any chances in the near future.

“That means high fees, high interest rates and very little manoeuvrability when it comes to negotiating your mortgage.”

:Lack of Low Interest Loans Harming Housing Industry

Bright Light — Thu, 26 Jun 2008 10:59:15 +0000

A general lack of new low interest loans is affecting the housing industry in many different ways. As a result of newly higher interest rates, many homeowners are finding that their once low interest loans are now very expensive. In addition, banks that offer low interest loans right now are few and far between. There are very few choices available for those even with perfect credit if they are trying to get a low interest loan in the current climate. As a result, new home purchases have dropped significantly.

CML director general, Michael Coogan commented: “Monthly house purchase lending volumes continue to be lower than last year’s levels and there will be a further weakening in coming months as recent approvals data has shown. The squeeze on mortgage funding has led many lenders to tighten their lending criteria. While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market. There has been a resurgence of fixed-rate lending as borrowers are seeking certainty. This trend is likely to continue as the anticipation of future Bank base rate cuts has diminished.”

Low Interest Loans Not Easy For First Time Buyers

Bright Light — Thu, 19 Jun 2008 12:03:59 +0000

Although property values are enticing many people to become first time home buyers, most are finding it impossible to get a low interest loan. The issue is getting increasingly worse and many wonder just how long it will be before low interest loans come back. Right now, more banks across the UK announced this week that they would not be offering low interest loans and it appears as though many others will be following their lead.

Katie Tucker of John Charcol stated: “Although the expansion of the scheme will allow more first-time buyers to buy a share of a property without a deposit, the Homebuy schemeÕs administration has not been known for its speedy service.”

“It is possible to negotiate discounts of up to 20% on the asking price if you are a bulk buyer of new-build flats,” says Ray Boulger of John Charcol. But will that be enough to make these properties attractive to housing associations? There are whole blocks of new flats boarded up, for example in Thamesmead in south-east London. It would make sense for a housing association to buy them, refurbish if necessary and rent them out or offer shared equity deals.”