10th March 2014
The amount of us who think that interest rates will go up over the next year has increased, so it may be time to think about taking out a consolidation loan to help pay off your unsecured debts.
In the Bank of England`s survey into consumer inflation attitudes, two-in-five of those polled reckon that the base rate will have gone up by this point next year. That`s the highest level since May 2012 and is up from 34 per cent last November.
The Bank has kept its cards pretty close to its chest, with a suggestion of a date in the second quarter of next year being the most likely for the its interest rate to raise above 0.5 per cent for the first time since 2009.
It`s an important factor for all homeowners with mortgage plans which have rates tied to the BOE base rate to consider, as their home repayments will depend on what the Bank alters that rate to, basically the higher it is, the more they`ll pay. However, while the base rate itself hasn`t risen for five years, that doesn`t mean that mortgage prices have stayed as low.
Price comparison sites indicate that the average two-year tracker rate currently sits at 2.79 per cent, up 0.29 per cent on February last year. It`s because of increases like this that it`s really important to come to take a look at the wider view in the market and a broker like First Choice Finance can help you do this when considering taking out a mortgage or loan product against the value of your house, as we will focus on finding the most suitable deal for you from our lending panel.
All we want to do is establish your needs and requirements and an adviser will present you with a home loan option on a free quote, no-obligation basis. If you`re happy with it, your consolidation loan could pay off your existing unsecured borrowings and leave you with a single repayment to make each month on your credit. You will probably pay back more over the loan term by consolidating your debts in this way and you are moving unsecured debts to a loan secured on your home, so ensure you weigh up the pros and cons before you proceed with any offer of finance.
Discover more about debt consolidation through firstchoicefinance.co.uk or by calling us on 0800 298 3000 or 0333 003 1505.
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