Monday 6th of April 2009
Consumers are likely to continue to find it difficult to obtain credit, an expert has stated.
Such a suggestion could mean that those seeking equity release will struggle, something that could prompt the need for non-borrowing solutions for anyone requiring debt management.
UK economist at Capital Economic Vicky Redwood explained that banks are unlikely to increase the amount of finance they are making available in the near future.
"We still think there is a big risk that they will become even less willing to lend as their losses continue to mount," she said, adding that improving the flow of lending is important to help consumers, as well as allowing businesses to avoid making redundancies.
Should the prediction prove correct, borrowers may wish to seek IVA help in order to determine the best option for managing their debt.
A recent survey of lenders by the Bank of England indicated that the availability of secured credit to households had been reduced in the three months up to the middle of March.
