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.’
Related reading: Low Interest Loan
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