The cheap unsecured loan market has been hit as hard as the housing market as banks shut their doors and refuse to offer any new loans. For those with less than perfect credit, it is becoming nearly impossible to get a cheap personal loan and many believe this trend is going to continue for at least two years. However, not all the experts think the sky is falling.Philip Shaw, an economist with Investec, said: “The situation has deteriorated further and that’s consistent with the news over the past few days that mortgage lenders have been raising their rates and withdrawing products. Overall we feel that there is a very strong case for rates coming down next week.”Rob Clifford, of the broker Mortgage-force, said: “Can you rely upon a quote from a lender? The answer is no. Lenders are not obliged to honour quotes and could elect to reject all applications or offer less attractive deals. Consumers haven’t got a cast-iron deal unless they have received a formal mortgage offer from the lender.”David Hollingworth, of London & Country, said: “We are working extended hours to get applications through before rates are withdrawn. Whereas borrowers used to be able to go away and mull over a mortgage offer before deciding to apply, the danger is that now they cannot afford to do that, as a rate available on Friday could be gone by Monday.”
Related reading: Cheap Unsecured Loan
Comment on this article