Number Of Loan Refusals Soar By A Third

Mon, 08 Oct 2007

Nearly two million adults in the UK are being refused personal loans as a result of the recent credit crunch, according to latest figures from financial comparison website MoneyExpert .

The number of loan refusals has risen by a third due to a tightening on lending by UK banks, in wake of the credit crisis.

Nine banks have increased the cost of taking out personal loans by up to four percentage points, according to MoneyExpert, highlighting how those who do get applications approved are being made to fork out more.

Only new customers are being affected by the price hike, while a soar in rates, which have risen by almost a quarter over the past year, according to the Bank of England, is also contributing to rise in the number of loan rejections.

Personal loans account for £66bn of outstanding debt in the UK, more than twice the amount on credit cards and six times more than what is owed on overdrafts .
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