We are declining more than 50% of applications. We are constantly reviewing our criteria and have seen a slight increase in the number we are declining.
(PRWEB) December 4, 2007
Edinburgh, Scotland, December 4, 2007 -- The fallout from the recent US "Credit Crunch" crisis continues to have far reaching consequences for UK consumers, explains Andy Hygate from Loans for Bad Credit.
New evidence has emerged that suggests consumers are finding it increasingly difficult to obtain Loans, regardless of whether they suffer from Bad Credit or not.
Latest research from price comparison website moneysupermarket.com, states that to up 48% of loan applications are now being rejected, an increase of 15% that would have been considered prior to August 2007.
The increased rate of rejection reflects the dwindling availability of so called sub-prime (Bad Credit) products, with many lenders now tightening their applicant criteria or withdrawing from the market all together.
The crisis is not just limited to Personal Loans either; Credit Card applications are also feeling the squeeze.
A spokesman for Barclays recently told the Times "We are declining more than 50% of applications. We are constantly reviewing our criteria and have seen a slight increase in the number we are declining."
The worst hit borrowers though are undoubtedly sub-prime homebuyers and those seeking to re-mortgage. Recent months have seen 7 out of every 10 sub-prime mortgage products pulled from the market.
Will things get better?
The general consensuses is yes, but expect another 4-6months of market turmoil before seeing any sign of visible improvement, and at least 2 years for sub-prime mortgages.
Mervyn King, Governor of the BOE stated at Novembers Treasury Select Committee that the economic outlook was "uncomfortable" even with the proposed injection of a further Â£10bn into financial markets.
As more and more people suffer from Bad Credit related problems (now 20% of the UK population), consumers with have little choice except to wait for market conditions to improve, or just simply pay a higher rate of Interest for Bad Credit Loans.
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