New Loans Company Or Front For New Secured Loan Offering From Barclays?

Wed, 16 Jan 2008

A new loan company has been launched this week promising to offer UK borrowers an ‘alternative to high street banks’ .

The company Fair and Square is owned by Barclays Bank but interestingly claims it "has been launched in response to customers looking for an alternative as banks increase fees".

Fair and Square is offering customers secured loans at a low rate of 6.9 per cent. But despite the competitive rate, financial experts have warned against taking out secured loans as borrowers who get themselves into financial difficulty run the risk of losing their home .

Instead, borrowers should look at unsecured deals, which carry no risk of home loss and are available at cheaper rates . Moneyback Bank, which itself is a front for Alliance and Leicester, charges its customers a typical rate of just 6.7 per cent.

Julia Harris, of Moneyfacts, commented: "With more competitive rates on unsecured personal loans and lower rates on mortgages, it is difficult to see who will get a good deal from a secured loan ."

"Indeed, Barclays currently advertises its own unsecured loans at 7.4 per cent, promising to pay the difference if you find a better deal elsewhere," she added.
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