Right now is the best time to take out a loan if you need one, whether you are taking a look at the best mortgage rates, credit card rates, or personal loan rates out there because plenty of lenders are lining up next to each other in an attempt to make the best deal.
While many economic forecasters were predicting that the UK was finally recovering from the recession, the fact that the loan rates are drastically falling speaks otherwise.
Many credit card providers are even dropping their rates as low as 0% for long introductory periods. The truth is that lower credit loans, personal loans, and better mortgage rates enticed consumers to borrow almost one extra billion pounds in debt during September of this year, and the amount is expected to be even higher when the October figures come in.
In terms of the mortgage market, lenders continue to slash rates and offer better deals to qualified borrowers that can afford large deposits. Those who already have homes and simply want to get off of their standard variable rates have also been large targets since there are many homeowners nervous about the future of the market and their SVR.
Some of the great deals out on the market include the 2.44% two year fix from HSBC, the 1.99% two year rate from Tesco Bank, and more great deals from the top high street lenders. Experts believe that these types of fixed mortgages are being offered to customers because of the Treasury Funding for Lending scheme (FLS).
This is due to the fact that ht e FLS allows makes to make more lending funds available to businesses and families alike. In addition, it is also a cheaper way for providers to borrow money from the wholesale market with the Libor rate dropping by almost half since January making the market friendlier for banks and for those that need loans from banks.
Even the Co-Op was able to add a new marketing topping rate at the beginning of the month for those who could afford a 10% deposit indicating that the banks are finally improving and the FLS is helping to strengthen the market enough that first time buyers can venture back into it. Now Richard Lloyd the executive director of Which? is asking other banks to step up to the challenge and offer more choices for first time buyers.