Two of the UK’s largest banks announced this week that they will be raising the rates on their secured loan rate UK products. Although many experts had anticipated that banks would actually be lowering their rates, this latest announcement was shocking. In addition to raising their secured loan rate UK interest payments, many banks are also using stricter lending practices. The result has been that it is now nearly impossible to get a secured loan rate UK approval, even if you have decent credit. Those that can get approved are also noting that the closing costs are much higher than they were a year ago. This is resulting in a lack of new secured loan rate UK loans, and the trend is expected to continue. Francis Ghiloni, mform.co.uk’s marketing and business development director, said: “It makes some sense for lenders to use profiling tools to manage their mortgage books. It is estimated to cost around 0.5 per cent more to sign up a new customer compared to keeping an existing one.“The credit crunch has made mortgage availability the major issue and lenders are increasingly taking a tough line with existing borrowers. However they can still remortgage elsewhere and should.”
Related reading: Secured Loan Rate UK
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