UK has witnessed the worst of credit crunch in the past 3 years. The house buyers too have suffered a lot despite the interest rates are at an all time low. This is because of the high borrowing costs that financial institutions charge and make profits.
The worst hit in all this are the first time home buyers, home is a necessity which they cannot delay as they are fearing high interest rates in future. They have no option but to take the mortgage and pay the high premiums. As per Countrywide, an estate agency the maximum amount of mortgage interest rate was of 6.49%. This rate is 6% higher than the Bank of England’s rate of 0.5%.
Personal loans were being given out at 6.8% interest rate in August 2007, and currently the rate is 8.8% for people who have a very good credit record. The best rate for borrowers with a fair credit rating is 53.9%. The average credit that was being charged 3 years ago was 16.5% but this rate has not been the same since then.
As per Moneyfacts the average credit card now charges 18.6% to applicants who have a fair credit record. They are offered rates between 30%-35%. The margin of a 5 year fixed lending interest rates has gone up from 2.39 points to 3 points in 12 months. This means the cost of a £200,000 loan has gone up by £1,200 a year.
Many Brits are facing the credit crunch mainly because they are under pressure because of their mortgage. It is definitely a reason why households are struggling financially despite the low interest rates.
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The worst hit in all this are the first time home buyers, home is a necessity which they cannot delay as they are fearing high interest rates in future. They have no option but to take the mortgage and pay the high premiums. As per Countrywide, an estate agency the maximum amount of mortgage interest rate was of 6.49%. This rate is 6% higher than the Bank of England’s rate of 0.5%.
Personal loans were being given out at 6.8% interest rate in August 2007, and currently the rate is 8.8% for people who have a very good credit record. The best rate for borrowers with a fair credit rating is 53.9%. The average credit that was being charged 3 years ago was 16.5% but this rate has not been the same since then.
As per Moneyfacts the average credit card now charges 18.6% to applicants who have a fair credit record. They are offered rates between 30%-35%. The margin of a 5 year fixed lending interest rates has gone up from 2.39 points to 3 points in 12 months. This means the cost of a £200,000 loan has gone up by £1,200 a year.
Many Brits are facing the credit crunch mainly because they are under pressure because of their mortgage. It is definitely a reason why households are struggling financially despite the low interest rates.
Instant Payday Loans Online : Instant auto loans online, search for loan lenders, read reviews, compare interest rates for instant auto loans, use the online media while applying for instant auto loan.
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