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Loans 'have never been so cheap'

May 15 , 2007

Customers looking to borrow will find better deals now, in relation to the base rate, than they ever have before, claims a comparison website.

New figures show that some lenders are offering loans with the narrowest margin between the base rate and the loan rate in four years, according to moneysupermarket.com.

The website claims that this means borrowers can find a better loan deal than they could four years ago because instead of loan rates rising with the interest rates, they have come down.

At the moment the difference between the base rate of 5.5 per cent and the best loan rate of 5.9 per cent, offered by Masterloan, is 0.4 per cent but in March 2003 there was a difference of 2.95 per cent.

Tim Moss, head of loans at moneysupermarket.com, said: "Loans have never been so cheap."

He added: "This means the profit margins are narrower then ever for the loans providers and consumers are getting a damned good deal."

Source : http://www.thriftyscot.co.uk/Finance-News/052007/loans-have-never-been-so-cheap.html

 
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