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  • FIRST POST
    • RickMoney
    • By RickMoney 15th Jan 20, 10:44 AM
    • 152Posts
    • 18Thanks
    RickMoney
    Will a BoE interest rate change affect the interest % on loans being offered?
    • #1
    • 15th Jan 20, 10:44 AM
    Will a BoE interest rate change affect the interest % on loans being offered? 15th Jan 20 at 10:44 AM
    Hi,

    Can anyone comment if from previous experience when the Bank of England rates % was reduced if it followed that personal loan interest % also went down?

    If they did, over what timescale did it happen?

    Thanks
Page 1
    • foxy-stoat
    • By foxy-stoat 15th Jan 20, 10:50 AM
    • 5,760 Posts
    • 3,563 Thanks
    foxy-stoat
    • #2
    • 15th Jan 20, 10:50 AM
    • #2
    • 15th Jan 20, 10:50 AM
    The BoE base rate doesnt really have much to do with the personal loan rates people get offered, its done on your personal circumstances.
    • bigisi
    • By bigisi 15th Jan 20, 11:21 AM
    • 878 Posts
    • 1,655 Thanks
    bigisi
    • #3
    • 15th Jan 20, 11:21 AM
    • #3
    • 15th Jan 20, 11:21 AM
    The BoE base rate doesnt really have much to do with the personal loan rates people get offered, its done on your personal circumstances.
    Originally posted by foxy-stoat
    But that's not the question the OP asked, is it?
    • foxy-stoat
    • By foxy-stoat 15th Jan 20, 11:38 AM
    • 5,760 Posts
    • 3,563 Thanks
    foxy-stoat
    • #4
    • 15th Jan 20, 11:38 AM
    • #4
    • 15th Jan 20, 11:38 AM
    But that's not the question the OP asked, is it?
    Originally posted by bigisi
    I do apologise.

    Hi,

    Can anyone comment if from previous experience when the Bank of England rates % was reduced if it followed that personal loan interest % also went down?

    If they did, over what timescale did it happen?

    Thanks
    Originally posted by RickMoney
    No, the last time the BoE rate was reduced by 0.25% it had no impact on the personal loan I look out shortly afterwards.

    The rate I got offered was 2.4%, which was the lowest Natwest offered at the time.

    I cannot recall if they reduced their lowest rate to 2.15% at any point after the last time BoE reduced theirs my 0.25%.

    Does that answer the question?
    • RickMoney
    • By RickMoney 15th Jan 20, 11:44 AM
    • 152 Posts
    • 18 Thanks
    RickMoney
    • #5
    • 15th Jan 20, 11:44 AM
    • #5
    • 15th Jan 20, 11:44 AM
    Thanks appreciate the replies and indeed the question was in reference to the advertised rates the lenders offer.
    • foxy-stoat
    • By foxy-stoat 15th Jan 20, 11:50 AM
    • 5,760 Posts
    • 3,563 Thanks
    foxy-stoat
    • #6
    • 15th Jan 20, 11:50 AM
    • #6
    • 15th Jan 20, 11:50 AM
    Thanks appreciate the replies and indeed the question was in reference to the advertised rates the lenders offer.
    Originally posted by RickMoney
    The advertised rates will be the lender's headline rate - a rate that you may be offered or a higher one, subject to your personal circumstances.

    I haven't seen the advertised rates drop any time after BoE base rate change over the years.
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