Guaranteed car finance is offered to those who have a bad credit. Many are working for cash and they don’t have proof of their income. Some credit company requires this but in guarantee car finance it only requires the borrower’s signature and declaration in order to avail one. Lenders who accommodate people with bad credit don’t care whether the borrower will declare their income or not. The lenders believe that if these people don’t what their car to be towed then they will give priority on paying their debt. This is the reason why most of lending companies in UK offers loan to those who have bad credit. Lenders think and believe that these people really need to avail this loan to buy the things they need or to pay their previous debt.

As Gordon Brown tried to encourage banks and building societies to lend out more money, this marks the 5th rate cut in less than 5 months. Last October the rate stood at 5%.

The UK economy fell half a point between July and September, and by more than a point during November and December (ONS Stats).   The number of unemployed people in UK has also risen to 1,920,000 – the highest level in the last ten years.

This latest interest rate cut has lead to the Building Societies Association to comment that savers are effectively being punished for saving for having prudent financial planning.

Some business groups have argued towards that further cuts in the interest rate will not ease the economic crisis that the UK finds itself stuck in.  The Federation of Small Businesses believes it is a mistake to cut the rates. They are demanding improved access by lending institutions to new capital.