Despite the widely publicised drought that is currently affecting the UK’s money markets, British lenders are still eager to supply loans and credit to consumers.
According to a well-known credit reference agency, British lenders have little other choice to than to continue to supply loans to the general public for the simple reason that business has to continue regardless of current economical hardships.
However, a representative for the firm stated that for many of the institutions, high-risk (sub prime) prospects are being completely avoided. What this means to borrowers is that lenders are no longer willing to take a gamble on them, which essentially means that any grey areas on a persons financial past will be dug into far deeper than they would have been say this time last year.
On the other side of the coin, borrowers who do still conform to their lenders guidelines are far less likely to be offered a cheap deal in comparison to what could have been available to them this time last year. This is because a lack of funding across the board has forced providers to recoup as much as possible from what is available to them.
In related news, Gordon Brown has scheduled an urgent meeting with representatives from the countries leading home loan providers, to discuss ways in which finance can be offered to consumers that is priced in tandem or relative to base rate reductions.
