Consumers are becoming more cautious about credit and debt, according to one expert.
Building Societies Association director-general Adrian Coles stated that people are considering the implication of losing their jobs and wondering whether they should be watching their outgoings carefully.
In some cases, they are also perhaps contemplating whether remortgaging is a good option, he said.
“I think both sides of the transaction are changing their views,” Mr Coles remarked.
“On the lending side clearly some loans were made by some institutions to people who can’t now repay them.”
He explained that the situation is a bit like a hangover, with the industry at the stage where it does not want to drink ever again.
Over the last six months, 33,600 credit applications have been turned down on average every day, according to figures from Credit Action.
Meanwhile, the average house has fallen in value by £92 a day in the 12 months leading up to May 1st.
By Francis Finch