It has been claimed recently that despite the fact that the base interest rate is at an all time low of 0.5 percent the rates being charged on many mortgage loans and general loans are continuing to increase, meaning that consumers are unable to benefit from the cut in base rate in many cases.
In fact, the report claims that loan and mortgage interest rates have been rising at record levels, with the average rate on a five year fixed rate mortgage increased by 0.63 percent to 5.56 percent in June.
The June increase is said to reflect the highest increase in fourteen years when records began. During the same month the rates on personal loans also increased, with the average rate on a £10,000 personal loan rising by 0.97 percent for the months, taking the average rate to 10.32 percent.
Again, this was said to the largest increase on record. This comes despite the fact that the base interest rate has been held steady at just 0.5 percent since April of this year, which is just a tenth of the level that it was at in October of last year, before a series of dramatic base rate cuts.
The government has been taking various measures that include ploughing huge sums of money into the economy and the financial sector in a bid to try and encourage financial institutions to lend and try and reduce borrowing costs for consumers. However, despite this action the rate of interest being charges on many loans seems to be going up.
However, one industry official said that rates had not fallen at all ‘but have risen further as lenders respond to increased demand by pushing rates up even more’.
0 komentar:
Post a Comment