Fewer secured loan applications approved!

It has come as no surprise that lenders are becoming less likely to approve secured and homeowner loans such is the state of the current credit crunch and market conditions.

Recent figures published by the Halifax House Price Index Survey show that in the year to September average house prices fell by 12.4%. More alarmingly is the rate of falls which shows there is no end to the decline in property values. This factor alone is playing a significant role as Lenders are finding it more difficult to assess the value of a home in these conditions.

Another factor is the current lending crisis whereby banks are refusing to lend to each other. It is too early to tell whether the recent intervention by the Government and other countries will resolve this issue, however, the lack of funds is wreaking havoc.

Lastly, the availability of secured loans and other financial products has reduced following the collapse of Northern Rock and Bradford and Bingly. These and other lenders offered a variety of competitive products for the homeowner loan market which are no more. It is becoming increasingly obvious that those with bad credit histories are finding it more difficult to be accepted for loans.