More and more lenders are withdrawing their loan products from the market - we ask why?
It seems to be true, we are at the start of a credit crunch and lenders are tightening their belts, or so latest research by financial search engine MoneyFacts.co.uk suggests.
In November alone, almost 10% of the personal loans on the market were withdrawn with Northern Rock financed Eskimo Loans adding its name to the ever growing list of reputable financial establishments that withdrew their personal loan products already. This list includes Liverpool Victoria, GE Money and Leeds Building Society to name but a few.
The number of lenders offering secured loans has also fallen, painting a not so promising future for potential borrowers in the new year, especially as interest rates seem to be sitting at a relatively high level, with some still topping the 10% mark despite last weeks base rate reduction.
If you're thinking that you may need to take out a loan after Christmas you may do better to research your options sooner rather than later just incase this trend for product withdrawal continues.
This pattern is particularly worrying for borrowers as a reduction in the number of financial institutions offering loans means less of the competitive activity that helps to keep rates low and lenders lax with their eligibility criteria.
However, despite this, with a little comparison you should still be able to borrow the money you need, it may just not be at the competitive rate you would have got a couple of months ago.
Compare loans via money.co.uk
