Borrowing money has become more expensive. Various lenders have raised their interest rates and new interest rate increases have been announced. A trend break!
Various lenders raise interest rates
Recently Good Finance have increased their interest rates for borrowing money. The last 2 are numbers 2 and 3 respectively in the interest overview. This is a 0.2% to even 0.6% increase
Also Goodbank, the number 4 in the interest overview, did not raise the borrowing rate long thereafter. And Findio also implemented another interest rate increase.
Borrowing money becomes more expensive
These interest rate increases ensure that borrowing money across the board becomes more expensive. In addition, the competition, currently the number 1 on the most important loans, is getting smaller. And with it the pressure on to keep interest rates low.
It is no coincidence that these lenders raise their loan rates one after the other. Just as with the mortgage interest, the loan providers keep a close eye on each other.
Trend break for loans
It has been quiet for a while with interest rate changes for consumer loans. The last change dates back to December last year. In addition, the trend was decreasing for a long time.
With the recent interest rate increases, there is therefore a trend break. This is striking because the policy rates of the European Central Bank (ECB) have not changed. The market interest rate for short term loans also remained unchanged. Credit providers can therefore get money relatively cheaply to borrow.
Comparing pays off when borrowing money
Apparently the margins are under such pressure that an interest rate hike from the competition is immediately used to improve the own result. Is the fierce competition of recent years now taking a toll? We continue to monitor developments in the loan market.
This makes it clear that it is worth comparing loans, rather than going directly to your trusted bank or lender. It may also be reason to transfer your loan (s) to another provider.