Credit crunch still affecting loans sector
March 26, 2008
A recent report has shown that the global credit crunch has continued to take its toll on the loans market, with the number of sub-prime mortgages on the market dwindling, and the interest rates on personal loans continuing to rise.
Consumers have having real difficulties when it comes to securing affordable finance, with those that have bad credit suffering more than most.
Reports show that a number of lenders have had to take some of their deals off the market over recent months, with many finding it difficult to raise finance to fund their lending and others becoming increasingly cautious over who they are prepared to lend to.
Tighter lending criteria has been brought in by a number of lenders, and is affecting all areas of the loans market.
One industry official recently stated: “The latest withdrawals from the market have come in what appears to be a second phase of tightening. Lenders are facing up to the reality that things are not going to get better in the near future: in fact, it seems that there is more blood on the carpet yet to be spilt. Although growing numbers of borrowers are set to slip into sub-prime status, the market shows no signs of being able to satisfy this heightened demand.”
Written by Peter · Filed Under News Loans
I found myself accepted for a store card the other day — but for the first time ever, the woman setting it up had to call through and discuss it with my bank. And then they gave me just £250 as a limit!
(Don’t worry, I always pay off my cards, I just get it for the perks).
Anyway, there’s no doubt the credit crunch is biting. As I recently wrote on my own blog, interest rates on Zopa, the peer to peer lending system, are spiking up as high street banks close down their lending offers, which I think is an interesting canary in the coal mine. Be interested in your thoughts? (I’ve given the link above).
Very nice site btw. Very clean design. Will bookmark it!