Britons looking to apply for a loan - and in particular
those wanting a low rate of interest on their borrowing -
should act as soon as possible, an industry expert has
stated.
Speaking earlier this week, Esther James, personal finance
analyst for Moneyfacts reported that this week's withdrawal
from the personal loan market of the Hanley Economic
Building Society and Eskimo Loans, which was funded by
Northern Rock, could act as a blow to consumers looking to
take out a UK loan. And as these two financial providers
"bite the dust", the economic expert asserted that the
pulling out of the market by Leeds Building Society, GE
Money and LV= earlier this month means that the level of
unsecured loan lenders has fallen by about ten per cent in
the space of just four weeks. As a result, she suggested
that consumers may develop more difficulties in finding a
cheap loan.
Commenting on the findings, Ms James 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. Anyone considering a personal loan might be advised
to act sooner rather than later. With less choice, a more
cautious lending strategy and the impending decision on
payment protection insurance sure to shake up the market,
the 2008 loan market could look very different."
As a result, prospective borrowers wishing to apply for a
loan may wish to act immediately. According to the
Moneyfacts analyst, there still are a "handful of
competitive deals" available - which could be welcomed by
those after a cheap loan. However, pointing to the
financial services firm's best buy charts, Ms James
indicated that loans with interest rates as high as ten per
cent are becoming evermore prevalent. Consequently, those
considering borrowing were urged to take the time to scour
the market for the most inexpensive deal that they can
find. In doing so, she claimed that it is possible
consumers will be able to save "a bundle" in the long-run.
With the Christmas period - and the subsequent rise in
spending that it can bring - many people could well become
concerned that they may develop problems in managing their
money. In turn, those looking towards a cheap loan as a
means of help with money difficulties should act straight
away. And in applying for a personal loan as a means of
consolidating debts, borrowers are likely to discover that
their financial situation takes a turn for the better.
Robin Amlot, senior editor of Moneyextra, recently claimed
that taking out an unsecured loan for consolidation
purposes serves two main objectives.
As such borrowing carries a fixed rate of interest, he
suggested consumers will always know how much money they
are paying out each month. In addition, Mr Amlot reported
that the loan also marks a date by which borrowers will
have their debts cleared off. He added that although
applying for a loan makes a "great deal of sense" in terms
of providing help to get back on their financial feet,
people should be careful to ensure that they are able to
make repayments and avoid falling back into the red.
----------------------------------------------------
Abbi Rouse writes for All About Loans. Our visitors can
apply online for poor credit secured loans. We also
specialise in cheap loans, and the cheapest consolidation
loans online. Visit today http://www.allaboutloans.co.uk/
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