Lending criteria 'tightening'

Tue 15 Apr 2008 - Published in Loans

There is a tightening of all types of lending at the moment, as finance providers work to ensure that bad debt does not get any worse than it is at the moment, an expert has said.

External affairs director at credit reference agency Equifax Neil Munroe said that lending criteria are continuing to be tightened.

"We're seeing a tightening up of credit policy across all finance, whether it's mail order or a mobile phone, or a mortgage or a credit card, all lenders are taking action to make sure that bad debt doesn't get worse than it is at the moment," said Mr Munroe.

He added that the credit crunch will soon affect all types of credit and that people who have been on the borderline of credit worthiness may now not be able to borrow.

Figures from Credit Action indicate that total UK personal debt stood at Ł1,421 billion at the end of February 2008 and has grown at a rate of some 8.9 per cent over the course of the last year.

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