Expert
Loan News
21 April 2008
Lenders Tighten their Belts
The recent upheaval in the credit markets means for the first
time in a generation or more, credit is becoming harder to obtain
despite the Bank of England and the Federal Reserve in the US
injecting billions of pounds into the market. Interest rates have
also been cut by both the UK and the US and will continue to fall
according to pundits in the industry. The whole situation is
particularly bad news for those seeking loans with no assets to
secure against as many lenders are refusing to lend on some such
terms. Some pundits also predict that the situation will become
worse before it gets better, however long this takes.
Those lenders who are suffering big losses in the US sub prime
market are also starting to recoup losses by not passing on interest
rates cuts in addition to slashing savings rates. In these difficult
times, the good news is that if you are shopping around for a
secured loan and have sufficient equity in your property or asset,
you are more like to get a favourable outcome should you apply for a
homeowner loan. However, because the credit markets are being
squeezed, it is worth doing your homework before hand to find out
which lenders are receptive to your needs and are likely to make a
loan offer. Don't forget each application for credit makes a mark on
your credit history record which some lenders take into account when
assessing secured loan applications. Always consider seeking
independent financial advice and ensure such a course of action is
beneficial for you.
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