Lib Dems - Banks not granting enough secured loans - Loans - News - Moneyfacts


Lib Dems - Banks not granting enough secured loans

Lib Dems - Banks not granting enough secured loans

Category: Loans

Updated: 26/11/2008
First Published: 20/11/2008

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 It is now over 6 months old so the content may be out of date.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 still struggling to grant secured loans, it has been suggested.

The Liberal Democrats have called for more to be done to ensure financial institutions pass on the government bail-out, as many are found to be keeping the capital.

According to the party, secured lending has experienced its largest fall since the Bank of England began recording data 15 years ago.

The total figure lent to individuals and housing associations was found to have dropped by £22.6 billion over the last three months.

And with the government's assistance being granted on certain conditions, the Liberal Democrats noted that many banks are reneging on their deals.

"If they continue to hoard capital, refusing to lend to viable business and individuals, we are doomed to head into an ever deeper recession," they stated.

The party also noted that loans rates have risen by average of 1.24 per cent over the last year, despite Bank of England making cuts to the base rate.

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