Moneyfacts, a financial research company, recently released a report showing that lender rate increases are showing no signs of decreasing. This news is concerning for many people who are looking to take out a loan or refinance an existing loan. The report showed that the average interest rate on loans has increased by 0.4% over the past year, and is expected to continue to rise.
The increase in lender rates is due to a number of factors, including the recent economic uncertainty caused by the coronavirus pandemic. With the economy in a state of flux, lenders are becoming increasingly cautious when it comes to lending money. This means that they are increasing their rates in order to protect themselves from potential losses.
In addition to the economic uncertainty, lenders are also facing increased competition from other financial institutions. As more lenders enter the market, they are offering lower rates in order to attract customers. This is putting pressure on existing lenders to increase their rates in order to remain competitive.
The good news is that there are still ways to get a loan at a reasonable rate. Many lenders are offering discounts and incentives to borrowers who have good credit scores and a history of making on-time payments. Additionally, borrowers can shop around to find the best deal, as different lenders may offer different rates.
It is important for borrowers to be aware of the current lender rate increases and take steps to ensure that they are getting the best deal possible. By shopping around and taking advantage of discounts and incentives, borrowers can still find a loan with a reasonable interest rate. Additionally, borrowers should make sure to keep up with their payments in order to maintain a good credit score and avoid being hit with higher rates in the future.
Overall, Moneyfacts’ report shows that lender rate increases are showing no signs of decreasing. This news is concerning for many people who are looking to take out a loan or refinance an existing loan. However, by shopping around and taking advantage of discounts and incentives, borrowers can still find a loan with a reasonable interest rate. Additionally, borrowers should make sure to keep up with their payments in order to maintain a good credit score and avoid being hit with higher rates in the future.