Take loans before Christmas, Brits urged

Posted 2007-11-30

Britons seeking loans or mortgages are advised to get them before Christmas time because with the coming credit crunch, they will be a lot harder to secure. 

The effect of the credit crisis is felt more in the personal loan market so people wanting personal loan should not delay applying for it. Recently, Hanley Economic Building Society and Eskimo Loans, took back their personal loans. GE Money, Leeds BS and LV recently stopped giving people unsecured loans and the personal loan withdrawal from Hanley Economic Building Society and Eskimo Loans has brought a figure of one in ten lenders leaving the mortgage market. 

Technical manager at mortgage broker John Charcol, Katie Tucker believes the credit crunch has made an impact even on balance sheet lenders. These lenders are not giving away credit quickly to gain popularity though they have the means to do this. Reason being that doing this will just ruin their business in a mortgage market where borrowing getting tougher with lenders taking on cautious lending strategy. This climate along with the impending decision on payment protection insurance will bring out a totally different loan market in the year 2008. 

Currently, Woolwich, has a queue for update calls of one hour, and a queue for new applications that goes up to one week. Given this scenario, Katie Tucker states that borrowers must act fast and not wait till after Christmas to apply for loans and more so for remortgage applicants. Delaying will only result in getting a high rate from lenders for them.

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