Cost of borrowing on the up
The cost of borrowing is increasing and rose dramatically over base rate rises last year, it has been claimed. According to new data from MoneyExpert, the rate on a loan over £3,000 has risen from 12.35 per cent in November 2006 to 14.9 per cent. Meanwhile, the rate on a loan of £12,500 or above has grown from 7.1 per cent to 8.78 per cent. The growing repayment costs spell trouble for UK borrowers already struggling with affordability and higher utility bills, chief executive of MoneyExpert Sean Gardner said. "With the cost of living on the increase the obvious thing to do for anyone feeling the strain is to borrow money to tide themselves over. But people who want to take out a loan to consolidate debts or to make a large purchase must be wary of the overall cost," he explained. "A set of monthly payments may seem manageable but you always end up repaying much more than you borrow. The golden rule is only borrow what you are certain you can afford to repay," he added.
Share this..
Related stories
UK energy bills could top £2000 a year by 2016
Ofgem, the energy regulator, has today revealed that an additional £200 billion will be required over the next 10 years if the UK is to meet carbon emission targets. This will result in the average UK energy bill approaching £2000 a year by 2016 which is a massive 60% increase on energy costs today. Coming at a time when UK consumers and businesses are paying record energy bills this is not a he...
Read MoreCar giant Honda announces UK sabbatical
Japanese car giant Honda has confirmed that initial plans to close its Swindon factory during February and March have now been extended to April and May as sales continue to fall and new cars continue to stack up on the forecourts. While this reduction in trading will see production halted it will also allow the group to consolidate its balance sheet and reduce outgoings for the next four months a...
Read MoreAre regulators powerless to control UK mortgage providers?
The Daily Mail investigation which alleges that the average UK mortgage is now £1800 a year more expensive than it should be, due to the fact that UK banks have yet to pass on significant cost savings, has put the UK regulators back in the spotlight. While the UK government, and indirectly the UK taxpayer, continue to invest millions and millions of pounds into the regulatory regime governing the...
Read MoreRoyal Bank of Scotland to curb mortgage lending
04/06/2014 The Royal Bank of Scotland (RBS) has announced that it will be restricting mortgage lending from June 2014. This will mean that mortgage applicants can only lend up to four times their annual income for loans of £500,000 or more. They said the reasoning behind the move was to protect customers from taking on more than they can afford and to address inflationary pressure in Lon...
Read MoreBusiness confidence in the economy tested
A report by the Institute of Chartered Surveyors England and Wales has today cast a dark shadow across the UK business arena with the revelation that many businesses have a reduced confidence in the UK economy going forward. This will come as no surprise to those who have been monitoring the UK economy, but it is most certainly a downward step with regards to hopes of an economic recovery in the m...
Read More