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Northern Rock tightens personal loan criteria

Northern Rock tightens personal loan criteria

Category: Loans

Updated: 31/10/2008
First Published: 15/11/2007

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Northern Rock sees the first tightening of personal loan criteria, reducing its maximum term for personal loans from 10 years to seven years.

Northern Rock are the first personal loans lender to make changes to the conditions of their personal loans deals. Northern Rock did stand out from the crowd offering a 10-year personal loan, so this latest move brings them back in line with the market.

As interest rates continue to rise and lenders withdraw from the personal loans market, borrowers will face not only higher prices but also less choice. Increasing rejection rates would also indicate that personal loans lenders are making behind the scenes changes to their credit checking criteria.

It's becoming a much more cautious lending environment. Borrowers must take the time to find the best personal loan deal for them. Many of the personal loan rates now advertised are typical rates, so you could find yourself paying a rate higher than that advertised.

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