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Can't understand current interest rates

I just can't understand the current loan rates - being so high what with the base rates being so low - maybe its just because they're all terrified of gambling on a bad risk - but I find it appalling.

I'm coming to the end of a £22K/4year loan for my car with Alliance & Leicester at the then not good rate of 6.7% - but at that time base rates were in the 3-4% or so range - now they are damn near zero and most places are offering almost 9% loans.

Do these people want the business or not ?? - I have a 999 credit rating which will only get damaged when I apply for a loan due to their credit searches (let alone when the headline rate turns out not to be available to me and I go elsewhere).

The phrase thieving rotten !!!!!!!s comes to mind.

M.

Comments

  • Wutang_2
    Wutang_2 Posts: 2,513 Forumite
    MDPlatts wrote: »
    I just can't understand the current loan rates - being so high what with the base rates being so low - maybe its just because they're all terrified of gambling on a bad risk - but I find it appalling.

    I'm coming to the end of a £22K/4year loan for my car with Alliance & Leicester at the then not good rate of 6.7% - but at that time base rates were in the 3-4% or so range - now they are damn near zero and most places are offering almost 9% loans.

    Do these people want the business or not ?? - I have a 999 credit rating which will only get damaged when I apply for a loan due to their credit searches (let alone when the headline rate turns out not to be available to me and I go elsewhere).

    The phrase thieving rotten !!!!!!!s comes to mind.

    M.

    You haven't quite grasped the state of the financial world...
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • motch
    motch Posts: 429 Forumite
    They may want your business at about the 9% rate as thats about where the true risk is at.

    Base rates and mortgage standard variable rates are artifically low at the moment with govt (tax payer) subsidising it all.
  • it will be a matter of years before lending rates bear any resemblance to base rates,the days of cheap money are well and truly over i`m afraid and have been for sometime
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