Loan Information

Payday loan until payday:

The ceiling on interest rates for payday loans are do not exist. Don't be shocked if you come across 1,000% APR for payday loans. Expect to pay upwards of £25 for every £100 you borrow on a monthly basis. Payday loans has helped countless people in the UK to pay for household bills and clothing. The FCA however introduced a price cap where the initial cost cap will be set at 0.8% of the outstanding principal per day. 

This will be on all interest and fees charged during the loan and when refinancing.

 The cap on default charges will be £15. The price cap is in place to protect borrowers. Review on the price cap will take place in 2017 and the outcome will be determined by how well or badly the economic market has performed. Did you know you can ask your employer for a pay advance instead...

Balance Transfer:  

Balance Transfer: The transferring of debit balance from one card vendor to another in the UK. It does not have to be all the balance on the card but some of it. Consumers benefit by making use of lower interest rates from the new financial institution. Look out for 0% balance transfers for 35 months, no annual fee and APR 18.9% variable.

UK Average Debt by Age:

With borrowing said to be up by 41%, the average debt is something to write about. Those aged between 35 and 54 are said to be in debt by just over £5,000 and 55 years and over saw a decrease to around £2,500. Source: MoneySuperMarket

Unsecured Loans less risk for the consumer:

A personal loan is not secured against any property but they form a bigger risk to the lender. As such the interest paid will certainly be higher than a secured loan but in some case lower than a credit card.

Loan Information:

When will interest rates rise? 

Possibly February 2016 

What is the rate of inflation?

The average rate of inflation for 2015 will be 0.5%. This has been the lowest for 14 years.

What is the Enterprise Finance Guarentee?

Funded by the tax-payer, it was set up in 2009 to help small business who maybe experiencing difficulties obtaining credit.

How do UK lending providers contribute to economic recovery?

By offering services of consumer borrowing and the housing market loans.