Bank of England Reduces Interest Rate But Will Sub Prime Lenders?

Let’s hope that the BoE reduction of one quarter of a percent interest rate will actually filter down to those who need it most?

Prime lenders like Halifax have already passed it on to their customers, but for those customers of sub prime lenders like Capstone, GE Money, Kensington, and the like, the results are unlikely to be so fast, and in some cases, not be a result at all.

Repossession House Keys

This is because many sub prime lenders are now actually bad risks themselves on the inter bank money markets where the interest rate is not set by the Bank of England and therefore reductions count little.

The irony is that the biggest repossessers are now themselves considered to have bad credit ratings. Poetic justice it may be, but they still have the power to charge some incredibly high rates and penalties which should see them in business for a long time to come.