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Some of the UK’s leading loan and mortgage providers are expected to dramatically tighten their reigns come 2008, with regard to borrower qualification, one source has revealed.

A spokesperson for one of the UK’s largest credit reference agencies has suggested that the effects of the credit crunch will make the task of sourcing finance particularly difficult for the average borrower in the New Year. It is thought that loan and mortgage providers, will start to intensively vet new applications, rejecting borrowers who at other times in the year, would quite possibly have been approved for finance.

One expert suggested that consumers who have only arbitrary defects to their personal credit history could possibly come under fire, as lenders look to reduce their risks to an absolute minimum in response to current economic uncertainties.

The other potential detriment is that desperation is likely to cause a percentage of would-be borrowers to apply with multiple lenders. This action will increase the number of searches against an applicant’s name, which in turn could taint said individuals overall credit score.

Christmas is undoubtedly one of the busiest times for general consumer spend, however, one of the UK’s leading banks has suggested that December 2007 will set new records for cash point withdrawals.

According to data drawn from the banks latest statistics, consumers are likely to withdraw close to ½ billion pounds throughout the month of December. There have been approximately 8 million cash point withdrawals per day in the run up to Christmas 2008, which marks an increase of more than 2 million withdrawals faired against the same time, 5 years ago.

British consumers are dependant on cash points at and around the Christmas season, as a means to quickly and conveniently access their festive funds. However, it would appear that consumers are spending a lot more than usual, as demonstrated by the aforementioned figures.

Personal loan and credit card spending has also broken records in the run up to Christmas 2008. In the case of loans, more borrowers than ever were acquiring Christmas specific funds in the month of September, where traditionally, October is noted as the official start of the festive credit rush.

Loaning money to friends and relatives, could lead a proportion of UK residents into a “sticky” financial situation.

One of the world’s most successful online transactional institutions has discovered that amidst changing borrowing conditions within the UK, more people than ever are turning to loved ones and friends as a means to source a loan. However, the company has suggested that individuals who do decide to loan money could be running the risk of future debt difficulties.

A spokesperson for the firm commented that over 40% of consumers have loaned money to friends as some point in their lives, however, due to the awkwardness of asking for the funds to be repaid, an additional 70% state that they have never had the money back, which has then contributed towards their own financial problems.

One expert suggested that individuals, who do decide to lend money to their friends and family, must ensure that a set of terms is agreed at the outset. There is nothing strange, or indeed wrong with forming an informal agreement before any money is lent, and on most occasions a family borrower will think little of the gesture. Ultimately, individuals who do decide to act as lenders, must ensure that by doing so, they are not risking their own financial health.

As traditional routes to borrowing, such as unsecured personal loans, become less available to consumers, lenders have reported a surge in the uptake of UK home loans over recent months.

One of the UK’s largest lending institutions has reported that the number of enquiries for home loans over the last 8 weeks has been uncharacteristically high, stating that homeowners are turning to this “specialist” form of finance, in a desperate bid to attain credit. The lender reveals that demand has increased by more than 30% over the last 2 months, however, faired against the same time last year, enquiries are up by a staggering 60%.

One industry spokesperson commented that the recent surge in demand could also be due to an additional push from independent brokers. It is suggested that a sizeable number of intermediaries are turning to the home loans sector, as a means to balance losses garnered from a slowing mortgage market.

Home loans are often viewed unfavourably by many borrowers for the simple reason that security (in the form of the persons home) is required by the lender, in order for the application to be granted. Analysts predict that the UK’s credit market, and trends of such, will undergo noticeable change as the credit crunch takes its toll.

Last minute Christmas shopping could cost consumers almost double that of people who plan ahead for the holiday season, suggests a new report.

According to a study by one of the UK’s most popular credit card providers, consumers who leave their shopping up until the last week before Christmas Eve are almost 4 times more likely to accumulate unplanned debts as a result.

The study showed that individuals, who do decide to leave their shopping until the week before, are likely to spend an astounding 50% more than they had predetermined. On the other side of the coin, consumers who are thorough in the Christmas planning, on average spend almost 20% less than they intended.

Commenting on the findings, one expert stated that consumers have little excuse for not been able to plan for the Holiday season. From a money management perspective, it is absolutely paramount for Brits to plan as much as possible, in the run up to Christmas. It is incredibly easy to overspend, if you leave your shopping to the last minute for a number of reasons, predominately however, many consumers often find that specific gifts that they had considered to purchase will be out of stock, often meaning that more expensive alternatives are acquired through acts of “buying frustration”.

In related news, analysts predict that British consumers will add an additional 10 billion pounds to the countries “Debt Mountain” over the Christmas period.