(1888PressRelease)
December 06, 2007 - London (shakespearefinance) : According to the financial information firm Moneyfacts, the number of unsecured loan providers came down by 10 per cent in November. Many lenders in the UK have stopped giving unsecured personal loans to the borrowers.
The lenders who have withdrawn unsecured personal loans include GE Money, Leeds Building Society and Eskimo Loans. Eskimo Loans is funded by Northern Rock that was the first victim of global credit crunch. The reduction in the number of lenders offering unsecured personal loans has been attributed to global credit crunch, loan defaults and high interest rates prevailing in the market.
Many loan providers have also withdrawn a number of secured loans and mortgage products. Esther James, financial analyst at Moneyfacts said: “Such a large reduction in just the last month is worrying. With no signs of rate rises slowing, it's a rather unsettled market. The credit crunch is showing its strength in the personal loan market.”
People are struggling to manage their debts and with a large number of fixed-rate mortgages coming to an end in the next year, it will become more difficult for the borrowers. Credit is likely to become even more difficult to obtain in the near future. Figures from an independent loan comparison website revealed that 38 per cent of people who had applied for a new credit card in the past three months were turned down. One-fifth of the applications for a new personal loan were also rejected.
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