As banks across the UK stop offering many loan products, consumers are finding it increasingly difficult to get a cheap unsecured loan. The problem is one that is reaching across the subprime market into the prime market. For those with good credit, it’s almost unthinkable to have to pay a high interest rate for a cheap unsecured loan, but that is exactly what is happening. Experts fear that this trend is going to continue for some time until the housing and economic crises begin to wane. In the meantime, those looking for a cheap unsecured loan may be best served by waiting it out.Money analyst group The Thrifty Scot states, “Unsecured loan companies have also tightened up on lending criteria, and have raised the rates on their unsecured loans. The number of mortgage deals on offer has fallen by two thirds since the onset of the credit crunch, and due to increased stringency over eligibility, as well as other factors, the level of mortgage approvals has plummeted.”Mortgage interest rates have been rising recently, and many lenders have had to close their doors on new lending, or at least put restrictions in place. Many have also raised their minimum deposit levels on mortgages.”
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