Interest rate cut could make secured loans cheaper
05/12/2008The one per cent cut in interest rates announced this week could be good news for people looking at taking out secured loans.
Commenting on the move, Liberal Democrat shadow chancellor Vince Cable said: "This cut is both necessary and welcome."
However, he added the prime minister and his cabinet need to ensure the banks are prepared to lend, despite the economic downturn.
Mr Cable added it was down to ministers to end the current confusion "where banks are being told to hold capital and cut lending by the FSA, while being told to lend more by the government".
Homeowners who are keen to cut the amount they owe may find a secured loan can help.
This type of borrowing generally offers competitive rates, as the borrowers property is used as security.
By paying off debts such as credit cards bills with a secured loan, people may find they end up owing less interest.
 © Adfero Ltd
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