Money lenders ‘tightening criteria’

Money lenders around the UK have been tightening their loan criteria in recent months, according to a study by Moneysupermarket.

The price comparison service insists that in each of the past six months fewer loans have been approved by lenders, despite the standard of applications being roughly the same.

As a result of the apparent reluctance among lenders to loan money to would-be credit consumers in the UK, many of those who are already dealing with debt management problems are likely to suffer financially over the coming months, Moneysupermarrket suggests.

Tim Moss, head of loans at moneysupermarket.com, said: “The banks are denying they are getting choosy, but our findings show they are and many deserving Brits are suffering because of it.

“In the current climate of rising interest rates and the global credit crunch, it might not be long before we are getting credit checked to have the newspaper delivered.”

Debt management problems have been made worse for many people in the UK as a result of five increases in the cost of borrowing since August of last year.

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