Abacus Daily Debt News

Loan acceptance ‘could be problematic’ in 2010

Britons hoping to take out loans next year could find it difficult to be accepted, as a result of circumstances of the past 12 months.

According to moneysupermarket.com’s head of loans Tim Moss, rises in unemployment, as well as hikes in the number of people unable to make repayments, are expected for 2010.

As a result of these occurrences taking place in 2009, Mr Moss continued to say that many banks have lowered the number of personal loans on offer, with some only choosing to lend to those already with them.

"They’ve also increased the price of credit," he added, noting: "There’s no reason to believe that this will change over the next few months."

Mr Moss’s comments follow recent research from the organisation, which found that analysis of figures from the British Bankers’ Association revealed borrowers are finding it increasingly hard to get a loan.

According to the body, monthly lending dropped by 28 per cent in October, while for the same period, the number of people looking for such products climbed by 20 per cent.

By Sarah Adie