October 3, 2008
Demand for secured loans falls
With the credit crunch continuing to bite and the UK teetering on the brink of recession it came as no surprise that the Bank of England ( BOE ) reported that the demand for secured loans has fallen during the third quarter of 2008. The BOE has also predicted that the decline in this type of loan is expected to continue in the coming months.
UK lenders have made no secret that the tightening of the financial markets has caused them to consider the restructuring of their organisations and the withdrawal of most of their secured loan products. However, the dramatic fall in house prices has not helped the situation.
Many borrowers are complaining that lenders are placing too many restrictive terms and conditions on secured loans. However, it was also reported that there was a significant increase in those consumers who were unable to keep up with their loan repayments.