Cheap loans to become extinct
- 8TH JUNE 2007
If you’re thinking of taking out a loan to make the most of the low rate of interest, then you had better act quickly because cheap loans could very soon become a thing of the past. Already we have seen a steep increase in loan interest rates in the first six months of this year alone.
It is thought that partly due to the ongoing investigation into the payment protection insurance
(PPI) sector, that banks are raising their interest rates considerably in order to make up for the loss in profits that they stand to lose once the Competition Commission announce their recommendations in February 2009.
Payment protection insurance is taken out to cover the monthly repayments on loans, credit cards or mortgages should you find yourself out of work through accident, sickness or unemployment. The cover will provide benefit typically for up to one year during this time.
The Financial Services Authority and the Office of Fair Trading have brought to light the fact that many lenders, the high street banks being among the worst offenders, have been mis-selling the product in favour of raking in high profits.
If the banks lose their hold on the current payment protection market, and currently they account for around 80% of the sales, then they will go all out to recoup the loss of profits that could occur.
The cheapest way to purchase your payment protection insurance is by shopping around; British Insurance can save you around 40% on your payment protection insurance policy, while providing you with a top quality insurance product. They are an ethical, independent company who specialise in selling quality payment protection insurance products and are considered to be the “good guys” in the insurance world.
Simon Burgess from British Insurance says that they can literally save you hundreds of pounds every year simply by purchasing your payment protection insurance policy from his company.
