Those stuck with high rate bad credit unsecured personal loans are looking at their mortgages and deciding that refinancing may be the best option. While the amount of defaults for bad credit unsecured personal loans is not yet high, this may change if the housing market continues to struggle.
Phil Cliff, Director of Abbey Mortgages, comments: “A large proportion of mortgages offer borrowers flexibility and the research shows that many people are planning to take advantage of these benefits. It’s great to see that people are quite rightly prioritising their mortgage payments ahead of other financial commitments - having a smaller mortgage can mean you get a better deal when you remortgage and of course reduces future monthly outgoings.”
“It has always been the case that consumers borrowing small amounts of money tend to get stung with high APRs. Over the past 13 months, rates on these tiers have seen the biggest hikes. Overall, we wouldn’t encourage consumers to take out a loan for a small amount such as £1000. There are other forms of credit available such as the 0% Virgin credit card which will allow consumers to borrow £1,000 at 0% APR for a full 15 months,” stated Simeon Linstead of uSwitch.com
Related reading: Bad Credit Unsecured Personal Loan
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