Another Secured Loan Company Closes Its Doors
It has been a tough old year for anyone connected with the personal loan and secured loan industry over the course of the last twelve months, not only for those individuals who have applied for any type of loan, but also for those working within the industry.
Since the onset of the credit crunch last year, banks, building societies and other loan companies have been finding it increasingly difficult to obtain the funding in the wholesale money markets to be able to offer loans at any sort of reasonable rate and have been forced to tighten their lending criteria to the point where only those applicants with a perfect credit history are likely to be accepted for a personal loan.
The combination of all these problems has taken its toll on a large number of lenders, both large and small, with many secured loan companies going out of business altogether, or at least withdrawing from new lending due to a lack of funds.
The latest casualty to be hit by the effects of the credit crunch is White Label Loans, a subsidiary of the West Bromwich Building Society, who specialise in secured loans and second charge mortgage loans. The company, which deals predominantly with loan brokers, made the announcement this week, informing its brokers that any new loan applications would need to be received by Friday this week and that all cases must complete by 12th December this year.
White Label loans is the latest in a long string of companies which have withdrawn from the secured loan market including Firstplus, Future Mortgages and Southern Pacific Personal Loans, to name but a few and this is likely to make things even more difficult going forward both for loan brokers and borrowers looking for a new secured loan.
