UK loans outstrip national base rate
Vast numbers of UK loan borrowers are believed to be suffering as a result of exponentially high borrowing rates, reveals one source.
According to a leading financial comparison site, the gross cost of personal loan borrowing has increased by almost twice that of the national rate of interest in the last year. As a result, thousands of borrowers are reporting difficulties in meeting their loan repayment dates, which is resulting in high numbers of defaults, and instances of county court intervention.
In addition, statistics reveal that close to 1.1 million loan borrowers are confirmed to have missed repayment dates since summer 07, which represents a 24% increase in new cases of bad debt.
Matters are further worsened as a result of last week’s announcement by the BOE to hold interest rates at their current position of 5.5%. The announcement came as quite a surprise to many industry analysts, who confidently predicted that rates would reduce by at least ¼ of a percent, as a means to curb inflation.
