4 Home Loans

The decision by the Bank of England to cut interest rates to 5.25 percent has led mortgage lenders to cut loan rates.Lenders made the decision in an effort to limit the economic damage of the recent tightening of credit. They say they plan to pass the savings on to borrowers, which will reduce the monthly payment on a £100,000 by £16.

David Kern, economic advisor to the British Chambers of Commerce, lauded the decision to cut the rate, explaining that the worsening global economic situation made the move necessary to limit risk.

Mr. Kern believes that slowing growth is a greater threat than inflation and suggests that a larger cut was called for. A cut to 5 percent would have come as welcome news, he says.

Young people are more likely to consider a debt consolidation loan to manage debt than are older people, according to a new study.People in the 20 to 29 year-old age group are the most likely to take out a loan, followed by those in the 30 to 39 year-old group.

Data collected by Halifax indicate that many people are inspired by the new year to seek a loan in January. Numbers for the month are twice what they are for some other months.

Neil Chandler, head of Halifax Unsecured Personal Loans, says the first of the year is the time that many choose to turn to products that offer lower rates of interest.

Regardless the time of year, men are more likely to seek a debt consolidation loan than are women.

People should talk with family and friends about loans, according to the Consumer Credit Counseling Service.

New data shows the number of couples buying homes increased last year.According to mortgage broker John Charcol, 50 percent of first-time purchases were made by couples last year, compared to 45 percent in 2006.

The number of women purchasing homes on their own remained relatively static, but the number of men buying solo dropped, says Katie Tucker, technical manager Charcol.co.uk, the firm’s web site.

Ms. Tucker sees a number of advantages in purchasing as a couple. It is possible to share the cost of the mortgage and other household bills, and snuggling might just help to reduce heating bills.

She does not recommend that couples jump into home ownership, however. Rent first to make sure the decision to pair up is a good one.

More Britons are expected to seek secured loans in the first quarter of 2008, according to the Bank of England.