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.
Related reading: Low Interest Loan
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