According to the Bank of England’s Credit Conditions Survey Overdrafts and personal loans will be limited to ‘better quality’ borrowers over the next three months.
The Bank of England's Credit Conditions Survey also found ‘Lenders reported that the increase in credit availability had been supported by slight improvements in their funding costs and by an improved economic outlook for businesses.’
Mortgage availability will be ‘steady’ while tighter credit scoring for unsecured non credit card lending will continue.
The availability of commercial lending increased during the first three months of the year, in particular within the commercial property sector. Lenders report that the approval of loans within the corporate sector should continue to increase over the next quarter.
Slight improvements in lenders funding costs combined with the improved economic outlook for business were the reasons given for the increase in the availability of credit.
For UK households, as we’ve previously mentioned, the end of the recent Stamp Duty Holiday means less demand for new mortgage lending in the first quarter of the year. This is set to continue over the next three months and lenders are expecting ‘little change’ in the housing market.
Craig Gedey Marketing Manager at Debt Advisory Line said: ‘Limiting loans to ‘better quality’ credit scoring customers is good news if it helps stop people, who may already be struggling with debt, from trying to borrow their way out of it.’
‘If you have been refused a loan or cannot keep up with repayments on a mortgage, a loan or credit cards, speak to a Debt Management company as soon as possible, do not try applying for another loan with another lender.’
‘With a Debt Management Plan customers make one affordable monthly payment and in an IVA customers may have interest or charges frozen.’
‘One of the main advantages of using a Debt Management Company is that we deal with all your creditors on your behalf so you never have to see payment demands again. At Debt Advisory Line your Personal Account Manager will provide ongoing support and act as your one to one, main point of contact.’
Visit www.debtadvisoryline.co.uk today or call us FREE on 0800 157 7254