This Is Money, 22nd July 2013 | A Record Month for Freedom Finance
This Is Money recently publicised the news that June 2013 has been the most successful month ever for Freedom Finance. The reason for this, Freedom suggests, is growing consumer confidence.
Consumers using Freedom have benefited from the slashed interest rates lenders are now offering. Even those unable to obtain the best deals at the banks have been helped by Freedom’s ‘sub-prime’ loans.
These reduced interest rates have been accredited to The Funding for Lending programme implemented by the Bank of England. This programme has provided lenders with access to cheap cash, which can then be passed onto consumers, particularly those taking out personal loans.
Despite this renewed access to credit, Freedom Finance revealed that the majority of the £10.7million they brokered last month came from consolidation loans, used to combine a range of debt products into one affordable monthly payment, rather than loans to fund new spending.
The MD of Freedom Finance, Nicola Georgiou, believes that the increased consumer confidence is a result of lenders beginning to offer better options for borrowers. The increased borrowing as a result of this confidence has meant that the economy is finally showing signs of improvement.
Ms. Georgiou warns that ‘lower rate lending products are great…but borrowers need to be wary of the pitfalls’. This comes from the knowledge that lenders are restricted only to offering their advertised rates to 51% of applicants, meaning that those with poor credit history may further damage their score by being rejected altogether.
You can read the full article here.