A Fool and His Money

I’m sure you will have read about the current mortgage crisis, commonly being referred to as the ‘credit crunch’. It’s come about because the number of repossessions has increased in America and this is primarily being attributed to mortgage lenders lending money to pretty much anyone, in particular the sub prime market (those who have a ‘less than perfect’ credit score).

As we all know, whatever happens in America tends to make its way over here and this fear of a crisis, combined with our own problems aka Northern Rock, has meant many mortgage lenders have been tightening their lending criteria and even withdrawing products altogether.

What has this got to do with personal loans you might ask? Well, as the lending criteria for mortgages has tightened, thus this fear of a crisis has now filtered down to the personal loans market as well. Northern Rock was naturally one of the first and they have stopped doing personal loans altogether unless you already had a pre-approved application with them connected to your mortgage.

Others are quickly following suit or at the very least increasing their interest rates. We’ll keep you posted…

Related Information:
London mortgage broker

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