I knew my O-level Latin would stand me in good stead at some time!
As I toil in the gym, 5 days a week, on my rehabilitation programme, I relieve the boredom by watching Sky Sports. The most common advertisement is for so-called "Payday Loans". I was shocked to see interest rates of 1,734% and over 5,000% were being charged in two cases.
Shocking as this may seem, our own High Street Banks do not cover themselves in glory. Apparently Royal Bank of Scotland and NatWest charge a £6 daily fee for an unauthorised overdraft - equivalent to an APR of 2,190%. Halifax (part of the Lloyds TSB Banking Group) levies a £5 daily fee which equates to 1,825% (source: Which?).
Interest rates are predicted to stay at their current record low level for some time to come - one prediction suggested until 2016. Consequently, mortgage interest rates are competative with several lenders offering fixed rates of under 3% and on average a fee of £1,999. Tracker rates are even more competative with some as low as BOE + 1.79%. The sting in the tail can be a fee of up to £1,499. There are still some very good fixed and tracker rates with low or no fees. If you are fortunate enough to be with a Lender who offers a very low standard variable rate or a low lifetime tracker and interest rates do remain low (and you have no reason to borrow more i.e. you are not moving or increasing your mortgage) the most sensible course is often to stay with your current lender on their standard variable rate.
Of course, your Cambrian Adviser will discuss your requirements with you, as we are a "whole of market" mortgage intermediary, and the rates and offers available can change almost on a daily basis.
RM Taylor