In recent weeks, various mortgage lenders have adjusted the interest on mortgages upwards. Interest rates on loans are also expected to rise. Why are interest rates rising all of a sudden? What does such an increase mean for your loan and what is the smart thing to do now?
You have probably heard of it: interest rates have been rising since the beginning of this year. How is that possible? The prices of various goods are currently rising rapidly in both Europe and America. This is partly because a lot of money has been pumped into the economy, the demand for goods is high and the supply of goods is lagging behind. As a result, demand exceeds supply and prices rise. That’s called inflation. In fact, your money becomes worth less: with the same amount you can buy less.
Higher interest rates curb inflation
Some inflation is fine for the economy, but if it goes too fast, central banks step in. A powerful weapon, for example, is raising interest rates. If interest rates on the capital market rise, less is borrowed and the demand for goods falls again. In this way inflation is slowed down. Mortgage lenders and credit providers themselves borrow money on the capital market to be able to lend to you again. They are now more expensive and in turn are raising the interest on their mortgages and loans.
Interest Personal Loan does not change
So much for the explanation of why interest rates are rising. But the question is, of course, what does that mean for you? It depends on. If you took out a Personal Loan proceeds not so long ago , there is a good chance that you did so at a low interest rate. You do not have to worry that your interest rate will rise, because it is fixed for the entire term. Of course you can always ask us if you can borrow even cheaper elsewhere. We would be happy to find that out for you.
Revolving credit may be more expensive
Do you have a Revolving Credit ? Then the interest rate is not fixed and an increase is possible. Perhaps you can transfer your Revolving Credit to a Personal Loan. You then benefit from a fixed interest rate, you do not have to fear future interest rate increases and your monthly payments will remain the same. Ask us whether refinancing is possible in your situation and what your advantage is.
Borrow cheaply now
Were you planning to take out a loan, for example for a car or renovation ? Then you can still borrow money at a very attractive interest rate. Although interest rates are rising, it is happening in very small steps. Interest rates are therefore still very low. But there is a chance that borrowing will become more expensive. At the moment you may still be able to realize your wishes at low monthly costs. And you may still be able to borrow the required amount at all. If interest rates rise, this can become more difficult. Then you may have to revise your plans or even forget them altogether.Â
Request a quote
Do you want to know how much you can borrow now and at what interest? Then check the interest and calculate how high your loan amount is .We check where you can borrow money most cheaply. In addition, we always advise you in advance, so that you know what the loan means for you, what your monthly payments are and when you are ready to repay. Don’t wait any longer, take action.
