Relaxed lending is over now, thanks to credit crunch

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Business - Financial - Ask4loan - Personal Loans

Release Date: April 03, 2008

Relaxed lending is over now, thanks to credit crunch

By Ask4loan - Personal Loans
April 03, 2008

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The lenders in the UK financial markets are only dealing with creditworthy borrowers and the relaxed lending terms are now a thing of the past.

PR9.NET April 03, 2008 - London, UK - The effect of the global financial crisis is feeding through to the homeowners who are left to face high borrowing costs in the market. The sharply increasing mortgage costs with big, reputed banks and the well-known building societies have resulted in tightening of lending criteria for the borrowers. Million of homeowners in the UK have to remain content with narrowing mortgage opportunities and high borrowing costs.

The lenders are by and large holding out a message that they no longer want to deal with borrowers who are risky propositions to them. This is in stark contrast to the relaxed lending in the past few years. Some of the big names in the lending industry like HBOS, Nationwide and Lloyds TSB have raised the interest rates on their main products. This trend among the leading lenders in the market is continuing since the past few months.

Even the smaller lenders, who are now inundated by loan applications as the big lenders raise their cost, are either restricting the lending or withdrawing from their products at an alarming rate. Louise Cuming, head of mortgages at Moneysupermarket.com said: "The free availability of credit that we've seen for the past few years will all but disappear and that will be the pattern of the next two or three years."

The experts say that the first time buyers will be amongst the hardest hit followed by the 1.4 million borrowers who are coming off their short-term fixed rate deals in this year.

For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.loans-park.co.uk

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Relaxed lending is over now, thanks to credit crunch

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About Ask4loan - Personal Loans

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Ask4loan as a finance specialist.

For more information related to UK loans please visit: http://www.ask4loan.co.uk