Shawbrook bank have today announced that they are dropping the rate on their Secured Loans to 6.9% – this is the lowest rate the market has seen since the credit crunch began and is available on the Platinum Secured Loan products.
In further good news for the loan market, Shawbrook also announced that as well as this 1% drop in loan rates for employed applicants to their Platinum plan, they are also increasing the maximum loan size from £100,000 to £125,000. However the minimum allowable Risk Score has been increased from 425 to 450 and the Debt-To-Income Ratio (DTIR) is now 42.5%
On their Plus plan they have also made changes too with rates increasing on the 80% and 85% plans, the minimum Risk Score increasing to 425 and Advance size on the 72-75% LTV plans lmited to £40,000.
Nevertheless the headline for the Secured Loan market is good news as this new low interest rate will continue to fuel the competition that has been growing in this sector for the past few months. With Unsecured loan rates about to go below the 6% mark from HIgh Street lenders the trend is certainly positive and hopefully reflects and ongoing normalisation of lending conditions for consumers in the UK