Personal Loans – Fewer available from Unsecured Lenders

According to a report, there are fewer personal loans available from unsecured lenders for borrowers in the UK.

Financial experts who conducted the study have said that they are very concerned about these trends. This concern is because they found there was a 10 per cent drop in the number of unsecured personal loans providers throughout the time they recorded the figures.

It is believed that this is as a result of financial problems and increased cash flow trouble in the money markets and this has negatively affected lenders.

One loans lender revealed that they were withdrawing their loan products after being affected by these problems. The decrease of personal loans has been blamed on higher loan defaults, increased interest rates and the credit crunch.

As time passed, more and more loans companies stopped offering unsecured personal loans to their customers. As well as this, the study’s figures also showed that there have been reductions in product availability amongst secured loans lenders.

The company who carried out the study have said that the decrease is so worrying because it was so quick. This has made it such an unsettled market and the credit crunch is really affecting the personal loans market.

The company also pointed out that even lenders who do still do the loans are applying rules that are a lot more stringent and have increased the rates of interest on credit cards, personal loans along with other forms of finance. This is because lenders are trying to recoup losses that they have had and also try and stop any that they may experience in the future.

One loans lender revealed that they were withdrawing their loan products.

The study showed that there have been reductions in product availability amongst secured loans lenders.

The credit crunch is really affecting the personal loans market.Personal Loans – Fewer available from Unsecured Lenders / Author: Gill

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