British banks 'providing more loans' - Loans - News - Moneyfacts

News

British banks 'providing more loans'

British banks 'providing more loans'

Category: Loans

Updated: 24/02/2009
First Published: 24/02/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Banks in the UK are helping to make up for overseas institutions that are failing to provide secured and unsecured loans, it has been suggested.

However, the British Bankers' Association added that there is a limit to how much lenders are currently able to do.

Chief executive Angela Knight explained that banks are providing finance for house purchase as well as for cars, with two-thirds of home loans coming from such institutions.

"UK banks are working to support individuals and businesses and to fill the UK's lending gap. But demand is weak with people being cautious and repaying short term loans," she remarked.

Ms Knight also observed that pressure is being placed on lenders to provide more credit, yet they are also being told to look for deposits before doing so.

Last week a Which? survey revealed that many consumers lack faith in banks, with just 37 per cent expecting them to act in the best interests of the economy.

Find out more:

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Regulator to take closer look at high-cost credit

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market is still broken

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Get a record low rate loan - if you qualify

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…
 
Close