Loans Blog

Amid talk of recession and fluctuating share prices, many people will be concerned by the Bank of England’s warning that our economy faces its toughest challenge in over ten years.

Whilst UK borrowers are unlikely to see the hefty current US interest rate drops, property loans look set to get cheaper, with fixed deals already dropping.

In this uncertain period, it’s vital to take control of your financial situation, and top of the list has to be cutting significant outgoings off your mortgage bills.

Interest rates are widely expected to move from 5.5% to 5% after 2 further reductions this year, with the cost of fixed rate loans dropping to reflect expected lower costs.

Abbey, Cheltenham & Gloucester, First Active, Halifax and Nationwide all increased their tracker rates or lowered their fixed rates last week in expectation of the falls to come.

Of course, fixed rate loans could continue to drop even lower, so the gamble for the borrower is whether to be tied into today’s attractive rates or hold out for a better deal.

Some of the best deals are being snapped up as soon as they emerge – for example, Bristol & West recently introduced some good deals which were so in demand that they had to be withdrawn just days later. So it can be a full-time job trying to run around keeping up with the best deals.

Luckily, this IS the full-time job of our expert financial advisers who can save you the legwork and chat through your personal circumstances to ensure they only give the financial advice that is right for you.

Talk to us today by calling 0844 560 7703 or visit the Personal Loans Made Easy home page.

Okay, it's got nothing to do with May (although it 'may' have in a few months...) I just couldn't resist the pun! Why not break with tradition by talking about financial matters AND having some fun? Anyway, onto the facts...

Alistair Darling, Chancellor of the Exchequer, is reported as saying that the Bank of England has "room for manoeuvre" on UK interest rates if necessary to stabilise the slowing economy.

He is quoted as saying, "Because we now have low unemployment, we've got historically low inflation, low levels of interest rates and mortgage rates, the Monetary Policy Committee has room for manoeuvre. As the (Bank of England) governor said in his speech in Bristol a few days ago, that wasn't available to them 15 years ago".

Mr Darling's comments could be taken by the markets as added pressure on the Bank of England to lower the cost of borrowing, despite inflation remaining a significant concern.

It is generally expected that the Bank of England will lower interest rates to 5.25 per cent next month, but will not necessarily go any further in a hurry. The quarter per cent reduction last December saw the first UK rate-cut in over two years.

Amid much recent hype about the likelihood of the US economical situation spreading quickly throughout Europe, Mr Darling highlighted the fact that the situation in the US is very different to ours in the UK and most other economies in Europe.

So, after the usual panic reaction whipped up by the good old British media, it seems the US situation may not be as influential as we've all been lead to believe. If you're looking for some real, human advice from a loans expert who has the time and inclination to keep on top of the complexities of financial forecasting (let's face it, if it's not your field of interest it can be a major headache!) then just give us a call on 0844 560 7703 or visit the Personal Loans Made Easy web site, where you can be safe in the knowledge that we've already done all the hard work to bring you the best deals and advice available...

...then get on with doing what YOU'RE best at!

Debt consolidation is often a good solution when you have got into a bad credit situation.

Basically, it's when a loans company takes on all your outstanding debts and gives you one single loan. They will pay your creditors on your behalf and charge an interest, making your payments less than all your different loans put together. A consolidation loan can also be easier to manage, with one single payment rather than having to keep on top of multiple payments.

The amount of debt you can consolidate is often surprisingly high, so it's always worth speaking to an adviser whatever your situation. Loans can be secured or unsecured. A secured loan is taken out against collateral, usually your house. The loan can often be issued immediately if you arrange it online. Although if the loan is taken against the equity in your home, then the value of it may need to be verified first in some cases.

To improve your credit rating, remember to pay all your bills promptly where possible.

Student Loans, easily accessible though they are, can be a regrettable thing. If you're not so well-off in the self-control stakes, you can find yourself in so much student debt that you end up repaying it for a lot of years - many of us have been there.

Many people end up seeking a further graduate loan to cover the excess of those carefree student days, but if this is not carefully considered then the snowball effect can quickly kick in and leave little of your monthly wage free for enjoying life.

No loan should ever be taken out lightly. That's why we have advisers who will help you to decide the best way forward for you, whether it's debt consolidation, a competitive personal loan or even if it is to take out no loan at all! (After all, the risk is mutual so an unmanageable loan for you is also a problem for us).

Call us for a chat about your circumstances on 0845 434 9077 or click here for further information: Personal Loans Advice

Following monday's hefty price-crash in the US stock market, the effects are already being felt across the wider global economy, amid fears of recession. £77bn was wiped off UK share prices alone as a result.

House prices are expected to take quite a fall as the year progresses, so now could be the best time to take advantage of the current value of your property to maximise your loan potential. A secured loan is a loan that is secured against the value of your property, so the lender is able to balance the risk of lending to you - this means that if your property decreases in value, your borrowing potential could also decrease with it.

So if you're thinking about a secured loan, it may be better to act sooner rather than later.

UK interest rates seemed only to rise during 2007, with the best personal loan deals being around the 6.5%-7% mark by the end of the year.

However, things are looking up for 2008 - we're only a couple of weeks in and several loan rates have already been reduced by up to 3%. This, combined with January being typically difficult, financially speaking, makes it a good time to consider debt consolidation and take advantage of these low rates.