Fresh
Start Loans Homeowner Loan
Fresh Start Loans Secured Loans
Variable
Rate Loans
The majority of secured loans Fresh Start Loans offer are
variable interest rate loans. In broad terms, this means that
your monthly loan repayments can change both up or down in
line with money market interest rates. A loan where the interest
rate is variable tends to be cheaper at commencement than
a loan where the interest rate is fixed for the whole period
of the loan. This is because the cost of the risk that interest
rates might rise has to be added into the fixed rate loan.
Fresh
Start Loans variable rate loans tend to fall into two main
categories:
- standard
variable rate loans - with these loans the interest
rate and thus the monthly payment tend to change only where
there are major shifts in the money market rates. They won't
be changed for minor changes in rates
- base
rate tracker loans - with these loans, the interest
rate and thus the monthly payment tend to change with every
change in money market rates because they are directly tied
to either the base rates of one or more of the high street
clearing banks or the London Interbank Offered Rate (LIBOR)
The
choice of interest rate rests largely with your risk outlook
and this is inevitably influenced by what the likelihood is
that interest rates might rise or fall in the future. Variable
rates tend to be more popular where the likelihood is that
money market interest rates are going to fall and less popular
when the likelihood is that they will rise. As at 30th September
2002, the money markets are anticipating a very small rise
in the interest rates in the UK over the next 12 months.
Fresh
Start Loans secured loans offer lower interest rates than
unsecured loans because there is less risk to a finance company.
Choose a secured loan from Fresh Start Loans because the savings
in interest over the term of the loan can be quite considerable.
Fresh
Start Loans would like to remind you that:
YOUR
HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE
OR OTHER LOAN SECURED ON IT.
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