Government 'must increase flow of lending' - Loans - News - Moneyfacts


Government 'must increase flow of lending'

Government 'must increase flow of lending'

Category: Loans

Updated: 28/01/2009
First Published: 28/01/2009

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 It is now over 6 months old so the content may be out of date.

Further pressure has been placed on the government to increase the availability of secured loans.

In its response to the recent pre-Budget report, the Treasury committee called for more to be done to improve the flow of credit.

The group of MPs stated that a return of lending is "single most critical problem" facing the UK economy at present and chairman of the committee John McFall urged the government to help accelerate this.

"There is still far more work to be done," he said, adding: "Without that increase in availability, the recovery of the economy will be placed in jeopardy."

Mr McFall also called for preparations to be made for the possibility that interest rates reach a point that they cannot fall below.

The Bank of England's base rate is currently at the lowest level in its 315-year history, having been dropped by 0.5 per cent to 1.5 per cent this month.

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 Any products featured may be withdrawn by their provider or changed at any time.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

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…

Competition returns to loans, but stalls in cards

Our recent figures reveal a mixed picture in terms of unsecured lending, as while competition appears to have returned to the loans market, it’s notably slowed in the credit card sector.

How to improve your credit score

Are you thinking about applying for credit? If so, you need to make sure your credit score is in order.