Lenders in the UK are on high alert and are extremely concerned about the risks involved with offering deals to potential customer, it has been suggested.
The Royal Institute of Chartered Surveyors (Rics) has claimed that the cautious attitude to lending among financial institutions around the country will lead to a limiting of the amount of credit available to UK consumers.
In response to figures from the British Bankers’ Association showing that the rate of increase in mortgage and consumer borrowing has slowed, Rics maintained that the trend is set to continue throughout 2008 as debt management woes worsen for many households.
“A more sluggish mortgage and housing market is set to continue in the near term, as financial institutions remain on high alert as to lending exposures,” said Oliver Gilmartin, Rics’ senior economist.
“Even the few undeterred by market conditions will to need to find even larger deposits to take their first step on the property ladder.”
A tightening of lending criteria in the UK will make an individual’s debt management history a more important issue for financial services firms nationwide, online mortgage company mform.co.uk suggested recently.