The news comes as loan arrears and bad debt judgements are increasing, bringing the number of people with a bad credit history to a high.
The Council for Mortgage Lenders (CML) also said that the number of people in mortgage arrears is rising, and is expected to continue to rise over the next few years.
However, those who have had financial problems in the past may still be able to obtain a loan, as the majority of mainstream lenders will now consider loan applications from people with an adverse credit history.
Britannia, Chelsea and Scarborough, Birmingham Midshires and the Yorkshire Building Society all offer adverse credit loans with a range of discounted and fixed products available.
The rate depends on the borrowers’ financial history. For example, the GMAC-RFC, an American lender, offers a rate of 5.59 per cent on a two-year fixed product for people that have a near-prime credit rating.