Press Release Summary: Many consumers will find it harder to get loans during the next few months with lenders turning down more mortgage and personal loan applicants, according to new figures.
Press Release Body: Nearly 2 million loan applicants in the past six months have been rejected by banks, said MoneyExpert.com, a financial comparison site. MoneyExpert revealed 1.91 million adults had been turned down (for an unsecured loan between April and September compared with 1.39 million who were rejected in the previous six months.
\"Lenders have been stung by bad debts with borrowers unable to repay the cash, and are tightening their lending criteria,\" said Sean Gardner at MoneyExpert.
\"A combination of the credit crunch and the Bank of England putting up interest rates has hit borrowers\' ability to repay and lenders are reacting. It is not just a matter of rates on loans going up. Lenders are much more cautious about who they will lend to.\"
At least nine lenders increased interest rates on personal loans this week by as much as four percentage points and many are upping mortgage rates.
Louise Cuming, head of mortgages at price-comparison site moneysupermarket.com, said: \"The result of all this will be two-fold. First-time buyers will find it harder to get on the ladder, with lenders recognising only the very safest applicants, while existing homeowners experiencing financial problems will find it increasingly difficult to borrow their way out of trouble.\"
Chase Saunders Financial Management has noticed an increased number of people requesting debt advice because loan applications have been refused.
The worrying part is that people still believe that borrowing more to clear debt is the only answer. There are other solutions that can give the desired affect of clearing the debt even if over a longer period, but at a payment that is affordable, this safeguards all household expenses and improves living standards by having the knowledge that everybody is being paid. All this without borrowing a penny!
For FREE confidential debt advice contact a debt advisor on 0800 138 2299 or apply online to www.chasesaunders.co.uk . Help is here.
2022
