Loans Set For Change
First published - Monday 24th, September 2007
Anyone looking for a loan in the UK will experience a changing marketplace at the moment as loan providers reconsider their product ranges.
The blame for the recent turmoil in world financial markets has been identified as irresponsible or uncontrolled lending in the US to borrowers who were not well equipped to be able to repay their loans.
The outcome of this risky lending has been a series of losses by investors in the credit markets resulting in a backlash and the restriction of funds to fuel the demand generated by loans.
As a result investors are requiring stricter, less risky lending profiles from lenders and now many loans are being approved on stricter lending criteria and some at higher rates in order to offset the risk. For example any self-employed person who is providing their own evidence of earning may now only borrow up to 70% of the value of the equity in their home on a secured loan.
The changes are not expected to affect the speed in which lenders operate and quick loans will still be available if the applicants can meet the new criteria.
Next News Article:
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