“When you enter an agreement with a lender in terms of a loan, they will often set the rates and lock those in.”

Mr Moore, however, did highlight the difference for those with specific types of loan, for example, a mortgage on a tracker rate.

In this case, for individuals who have this form of mortgage slightly above base, then some benefits could be derived from lower interest rates.

However, there is an important issue to bear in mind which Mr Moore elaborated on.

He said: “Anyone who is looking for a new loan or has the ability to do so, should definitely go for it, as it has never been so cheap.

“However, there are certain aspects to bear in mind. A person should consider whether they have job security, and not just take a loan for the sake of it.

“But although affordability is an issue, negative interest rates could work in the favour of many people, so it is definitely worth considering.”

As Mr Moore highlighted, job security has been a particular issue throughout the lockdown crisis, and as Britain enters recession, it is likely to continue to pose a problem.

For those on furlough, Mr Moore said they often do have difficult circumstances to confront due to job security in terms of the lending process.

He concluded: “The problem with many lenders is that they are looking at job security – and amid the pandemic and the recession, this is not always a given.

“The last thing lenders want to do is to lend money, and then a person loses their job and is unable to pay the money back. So people should think carefully when entering these kinds of arrangements.”

Source Google News