Credit conditions ‘will tighten further’

Credit will become increasingly hard to come by in the UK over the course of the next few months, one expert has asserted.

Vicky Redwood, UK economist at Capital Economics, is convinced that the trend toward more stringent lending practices witnessed since the start of 2008 is set to continue.

Ms Redwood gave her assessment in light of turmoil in global financial markets and the lack of available credit is expected to leave many people unable to secure a debt consolidation loan.

“If you were to apply for a credit card you would have less chance of getting one, and if you have got one you may see your limit reduced,” she said.

The Capital Economics expert went on to suggest that in 2008 mortgage lenders will be obliging their customers to make large deposits before buying a property.

A recent report from the Bank of England made cleat that financial service firms in the UK cut back on the availability of secured lending during the first three months of this year.