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

News

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

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 It is now over 6 months old so the content may be out of date.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 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.

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 Any products featured may be withdrawn by their provider or changed at any time.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