August 4, 2008
IMF report reveals bleak outlook for UK loans sector
The International Monetary Fund (IMF) has reported that the global economy is still facing financial turbulence. This is unwelcome news for the UK loan market. Some industry analysts were hoping that the UK had seen the worst of the credit crunch and were predicting an upturn in market fortunes.
The IMF’s research has also revealed that the global financial industry could lose as much as £500 billion. If these predictions are realized, the UK will experience an even steeper decline in house prices and a reduction in the issuing of credit based products.
The continuing global economic downturn has meant that the majority of the UK’s financial institutions are adopting strict lending criteria. This will result in banks and other financial agencies only offering their most favourable loan packages to those customers who have a good credit record. There appears to be little chance that loan providers will relax their lending criteria in the near future.