We may be facing a once in a lifetime global change, though this also presents once in a lifetime opportunity in our housing market.
We have seen interest rates at 17% in 1989, come down to 9.42% in 2008, and now we are seeing some of the lowest ever at 2.09%. Eager banks have almost never before seen interest rates and products on offer for the everyday consumer, with availability and accessibility proving to be very reasonable.
While there are so many options available for consumers right now, it can prove more beneficial for a consumer to not go direct to their bank. When speaking with Capita Finance General Manager Gill McLean about the benefits of working with a broker to secure a new rate or product, she went on to explain that “with the complexities that exist with people’s employment and other factors impacting their lives, our lenders all have different risk appetites, which means they are not all the same. With a full understanding of all the bank policies our team can very quickly identify which one is most suitable for our clients. We have this information at our fingertips, and we provide solutions to our clients every day.”. Having greater options in front of a client can allow them to find the most suitable product for their own goals and circumstances. With the complexities that exist with peoples employment and other factors impacting people's lives , our lenders all have different risk appetites which means they are not all the same and with a full understanding of all the banks policies our team can very quickly identify which one is most suitable for our clients. We have this information at our fingertips, and we provide solutions to our clients every day. Mrs McLean went on to add “our brokers work for our clients, not a bank, it is their duty to work in the best interest of our clients and ensure that the products they engage with are the most suitable options available”.
It is clear now the importance of ‘shopping around’ in the loan market. Though there are always two sides to every situation, while the uncharacteristically low interest rates we are seeing may be alluring, they can come with lower flexibility. By locking in these rates, you do secure your guaranteed rate for your elected time period, the downside to this is you could lose the flexibility to pay your loan off quicker, and in some cases reduce interest through offset accounts. Mrs McLean added that “every person must carefully consider what their financial goals are, the lower interest rates are always enticing, but it is important to consider if it is necessarily the right decision for your circumstances”.
The Capita Finance brokers are here to help support our customers through these questions. If you are unsure about what you need or what options are available to you, start the conversation with a Capita broker today. Let’s unlock your future savings and financial potential now.