Thursday 21st of May 2009
Lenders are becoming increasingly cautious about deciding who to lend to, it has been observed.
David Black, principal consultant of banking at Defaqto, suggested that only those with good credit ratings are currently able to obtain competitive interest rates when taking out a loan.
He noted that financial institutions are placing greater emphasis on personal circumstances when deciding whether or not to provide credit, with "many applicants" being turned down.
"As an individual’s credit worthiness deteriorates it becomes increasingly difficult and, when available, more expensive to borrow," said Mr Black.
Those who are struggling to consolidate their debt because of such experiences may wish to seek non borrowing advice, as other solutions are available.
Meanwhile, research by Moneyfacts.co.uk has indicated that secured loans are becoming more difficult to come by.
The price comparison site found that just three companies provide this form of finance, with 14 having withdrawn from the market in less than two years.
- House price rise 'may not indicate recovery'
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- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Credit card worries may be relieved by IVA answers
