Loans: Slowdown in Personal Loans Lending

By: Liam G

A recent report has revealed that over the past few months there has been a considerable slow down in personal loan lending throughout the UK.

November of last year saw a decrease of 10% in the number of personal loans processed by UK lenders.

Because of increasing financial worries for many UK residents, and further market difficulty, this situation has been described as a "worrying trend" by Moneyfacts.

There has been a number of guesses as to why multiple UK lenders have chosen to withdraw their products from the market, with the most likely culprit stated as being the credit crunch.

The credit crunch was sparked off late last year within the sub-prime section of the US loans market, when lenders made countless loans to less than credit worthy applicants, accounting to billions in un-repayable debt.

Even still its effects are being felt globally, with the UK slow down in personal loan lending just being one example.

The considerable increase in loan defaults is also making many UK lenders nervous, which is causing them to take various steps to recoup their losses.

Examples of this include lenders tightening up their lending criteria, making it harder to get approved for a loan in the first place and increasing interest rates.

This slow down has also been said to have spread to the secured loans market.

Such difficulty in obtaining loans means it has never been a better time to ensure you are getting a good scope of the market. This is best ensured by using online comparison sites, particularly those that brake down loan products based on your credit rating.

Personal Loans
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