A large number of UK consumers are finding that loans with average interest rates are becoming scarcer. According to current research almost half of all loan applicants in the UK will be rejected once lenders take into account factors such as employment history and credit rating. It is expected that even more borrowers will be turned away as financial companies incorporate policies that are designed to avoid consumers that are considered to be high risk.

In the current economic climate, any potential borrower that is classified as high risk faces the prospect of paying exorbitant interest rates on a personal loan.

Some lenders have decided that the safest course of action is to completely withdraw any type of personal loan service until there is a significant improvement in the economy. The credit crunch has ensured that these companies are adopting a safety first attitude in their lending criteria.

Consumers who feel they will not be able to cope without obtaining a loan are advised to thoroughly examine the interest rates and the terms and conditions that are linked to these financial products. The use of comparison websites can provide borrowers with a quick and easy way to assess the loans market.