Brits urged to get loans before Christmas
The full effects of the credit crunch are now starting to be felt – and a result personal loans and mortgages are starting to be more difficult to secure.
This week two lenders, Hanley Economic Building Society and Eskimo Loans, withdrew their personal loans – meaning one in ten lenders have left the market after GE Money, Leeds BS and LV= all stopped offering unsecured loans.
Esther James, personal finance analyst at Moneyfacts.co.uk, said: “Such a large reduction in just the last month is worrying. With no signs of rate rises slowing, it’s a rather unsettled market.
“The credit crunch is showing its strength in the personal loan market.”
She went on to advise anyone considering a personal loan “to act sooner rather than later”.
“With less choice, a more cautious lending strategy and the impending decision on payment protection insurance sure to shake up the market, the 2008 loan market could look very different.”
In the mortgage market, Brits looking to secure a deal are being urged to act early – as not only is borrowing getting tougher, but lenders are also making people wait cash advance usa.
Katie Tucker, technical manager at mortgage broker John Charcol, said: “The credit crunch means that even the balance sheet lenders who have funds available are in no hurry to price themselves into popularity because it could bury them in business and ruin their service levels.”
The Woolwich, for example, currently has a one-hour queue for update calls, and a one-week queue to even look at new applications – so acting early is imperative.
Ms Tucker said: “It is vital borrowers allow extra time for applications, the temptation to delay applying until after Christmas may cost remortgage customers an unexpected month on a nasty high rate if they revert to their lender’s SVR while they are waiting.”