Credit Crunch hitting personal loans

30th December 2007

The after effects of the credit crunch has been reported to stay with UK consumers until at least March 2008 when all the major banks and lending companies have had enough time to identify the true cost of the credit crunch.

Until these lending companies have done this due diligence, credit card providers and unsecured loan providers are tightening their purse strings and many UK consumers are finding out that getting access to new credit and loan facilities are somewhat harder - and up to 10% of credit card applications are being refused during this credit crunch period.

If you find that you cannot get a unsecured loan or credit card account, and you are a UK homeowner, then a secured loan may be the only realistic option for you. Most secured loan providers have upped their Loan-To-Value (LTV) to around 80-90% to make sure that the loan is commercially viable and of less risk during the credit crunch.