Anyone looking to borrow money in the UK is effectively fighting their fellow consumers for a share in what has become a “scarce resource”, according to one expert.
David Kuo, head of personal finance at Fool.co.uk, has asserted that while potential borrowers will be assessed based on the merits of their application, lenders are becoming increasingly reluctant to approve credit deals.
Mr Kuo’s comments came after a series of new reports suggesting that the UK’s housing market is facing a significant downturn as more and more people face difficulties in becoming debt free.
“Borrowers who have substantial equity in their homes will leave their banks with smiles on their faces. Those who don’t will leave empty-handed,” said Mr Kuo.
Last week, Scottish Widows reported that an increasing number of people in the UK are borrowing money from their grown up children to help clear debt.