Get A Cheap Loan While You Can
The Bank of England base rate of interest for loans and savings has remained at its historically low level of just 0.5 per cent for almost the past two years now, making personal loans and other borrowing significantly cheaper than they have been in the past.
However, as speculation grows regarding an increase in the base rate in the coming months, potential borrowers have been advised to take out the personal loan they may be considering, sooner rather than later, before interest rates rise and the cost of a loan is pushed up.
At the most recent meeting of the Bank of England’s Monetary Policy Committee (MPC) to decide on the level of the base rate of interest, three members of the committee voted to increase interest rates for loans and savings, compared with just one member in previous months.
Mervyn King, the governor of the Bank of England, has also suggested that the base rate for loans and savings could increase as soon as May this year, with a potential increase of 0.5 per cent, followed by several more rate rises throughout the course of the next twelve months.
Lenders are currently competing to offer the best cheap loan rates on their personal loan products and as a result of this, there are currently some attractive loan deals available on the market at the moment, even for small unsecured loans as well as larger personal loans.
But with the distinct possibility of an imminent interest rate rise, lenders are likely to increase their personal loan rates in line with any base rate increases and it would make sense for anyone who is thinking about taking out a new loan, to take action as soon as possible before they miss out on some cheap loan offers, ensuring that they shop around the marketplace to get the best deal for their circumstances.
