Athough many had hoped that the rates and fees for adverse credit loans would be going down, it appears as though banks in the UK have something else in mind. Several announced this week that they would be increasing their interest rates and analysts have found that the closing costs for adverse credit secured loans are also going up. The issue is widespread and even other types of loans are being affected by the current state of the housing market.
Darren Cook with Moneyfacts, commented, “The curse of Friday 13th bought more pain for borrowers as swap rates reached a new high of 6.49 percent. With lenders having to pay such a huge price to secure funds and a lag time of a few weeks before this cost is passed on to mortgage customers, the situation is likely to get worse before it gets better.”
Francis Ghiloni of mform added, “Mortgage rates are continuing to rise despite concerted action by the Bank of England and it is unlikely there will be many fixed-rate deals left for below six per cent. Those that do survive with headline rates of less than six per cent are likely to have higher fees as lenders seek to maintain profit margins.”
Related reading: Adverse Credit Secured Loan
Comment on this article