Consumers face increased difficulties getting finance during first quarter

Both private and business borrowers are set to face increased difficulties when it comes to getting finance in the first three months of this year, with the financial turmoil and the chaos caused by the credit crunch leading lenders to cut back on their lending levels.

According to a recent report a number of banks and lenders have now stated that during the first quarter of this year they will be offering fewer loans to business and private borrowers.

Many lenders in all sectors have already tightened up on their lending, and officials state that qualifying for a mortgage became increasingly difficult in the last three months of last year.

The tighter credit conditions could continue beyond the first quarter based on how the effects of the credit crunch continue to impact upon the money markets.

The lower lending levels have already seen consumers struggling with getting finance, and this has impacted on the economy, which is going through a slowdown.

Experts state that both businesses and consumers will feel the effects of the tighter lending conditions over the coming months, and some are worried that the impact on consumer spending could see the country coming close to recession.