Base rate cut could hold back loans market
12 January 2009
Financial experts have warned that January’s base rate cut could actually hinder banks’ ability to offer loans.
Although the base rate cut means that some of the funds needed by banks to offer loans have become cheaper, it also means that many banks are likely to lower their savings account interest rates – deterring savers and reducing the cash flow going into banks.
The Times claims that two thirds of accounts will now offer interest rates of less than 1%.
A loans expert for Think Money commented: “The cost and availability of funds for loans have held back the market in the past few months, but loans are still available. In many cases, it can just take longer to find the best deal.
“We advise anyone looking for a loan to speak to an expert loans adviser. Talking to the right person can make finding the right loan a lot easier.”
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Tags: loans, loan, getting a loan, loan rates, interest rates, loan interest rates
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