Brits Advised To Take Out Loans Before Festive Season

Fri, 30 Nov 2007

Brits seeking loans and mortgages have been urged to act before Christmas or risk losing out.

Personal loans and mortgages are becoming increasingly harder to secure as the full effects of the credit crunch continue to hamper UK markets.

This week saw two UK lenders, Hanley Economic Building Society and Eskimo Loans, withdraw their personal loans from the market, following on from GE Money, Leeds BS and LV – all of whom recently stopped offering unsecured loans .

Esther James, personal finance analyst at Moneyfacts.co.uk, said: "Such a large reduction in just the last month is worrying. With no signs of rate rises slowing, it’s a rather unsettled market ."

"The credit crunch is showing its strength in the personal loan market ."

James advised anyone considering a personal loan "to act sooner rather than later".

"With less choice, a more cautious lending strategy and the impending decision on payment protection insurance sure to shake up the market, the 2008 loan market could look very different," she said.

Homeowners’ looking for mortgages are also finding it hard going as not only is borrowing getting tougher, but lenders are also making people wait more.

For example, The Woolwich currently has a one-hour queue for update calls, and a one-week queue to even look at new applications – so acting early is crucial.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.