On 30 June 2022 financial analysts were shocked that lenders massively hiked their fixed rate loans by up to 1.40%. We begged to differ at the time, providing facts and, referencing among other, our 4 June 2022 research note, The brutal reality on the direction of interest rates.
On 4 August 2022 one of those lenders have cut their 4-year rate by a massive 1.60% (about 4 weeks after hiking it by 1.40%), and this time surprising financial experts.
On 5 August 2022 another lender again surprised financial experts with a massive cut to their 4-year fixed interest rate, “We’re also putting a competitive fixed rate offer on the table to help give our customers more options as interest rates rise.”
People, fade the marketing fixed rate loan circus because it has it has been done before.
Before you decide to take these fantastic massive cuts in the 4-year fixed rate space, look at the facts and the competitiveness of the product against the yield curve (you should know what we mean if you followed us), and not just the headlines they want you to focus on to (maybe) steer you towards a preferred loan product.