Interesting story in the Daily Mail regarding the interest rates payable on personal loans and other unsecured finance.
The way lenders work is that they often borrow themselves so they in turn can lend money out to their own borrowers. The only exception to this rule is when a lender has the luxury of people paying their savings into that particular bank, like a building society for example.
However, as most loan lenders do not have savers, they have to get their money elsewhere and how much they borrow the money for, determines how much they charge their own borrowers for lending it.
In recent months, the cost of lenders borrowing money has come down massively and these savings that they are making are now being passed on to borrowers, particularly those people accessing unsecured loans via a lender that deals in bad credit borrowers.
The way lenders work is that they often borrow themselves so they in turn can lend money out to their own borrowers. The only exception to this rule is when a lender has the luxury of people paying their savings into that particular bank, like a building society for example.
However, as most loan lenders do not have savers, they have to get their money elsewhere and how much they borrow the money for, determines how much they charge their own borrowers for lending it.
In recent months, the cost of lenders borrowing money has come down massively and these savings that they are making are now being passed on to borrowers, particularly those people accessing unsecured loans via a lender that deals in bad credit borrowers.