Thursday 27th September 2007
Figures published by the Bank of England indicate a tightening of conditions in the unsecured loans market.
Respondents to the institutions recent Credit Conditions survey stated that they have witnessed a decrease in the availability of unsecured lending in the three months to mid-September.
But despite the credit crunch, none of the lenders approached predicted a worsening of the market over the next quarter.
Council of Mortgage Lenders director general Michael Coogan suggests that consolidation in the industry ahead of the US sub-prime lending crisis means many firms need not tighten their criteria further.
"Although this survey was undertaken before the Northern Rock situation emerged, the funding constraints arising from the slowdown in the interbank lending market were already apparent," he observes.
Mr Coogan adds that it is "encouraging" to note that lenders also predicted that the availability of secured loans - such as mortgages - will remain robust in the coming months.
©
Fill out a form to speak to an advisor about what type of loans might be right for you.
