Availability of loans shrinks in three months to September

6 October 2008

The availability of loans and other types of credit has shrunk in the third quarter of 2008, according to the Bank of England (BoE).

In its latest Credit Conditions Survey, the BoE reveals that ‘Lenders reported that they had reduced the availability of secured credit to households [such as secured loans and mortgages] in the three months to mid-September by more than they had anticipated in the Q2 survey’.

However, the availability of unsecured credit (unsecured loans, credit cards, etc.), although down, was reduced ‘in line with expectations three months ago’.

“The figures underline the importance of talking to the right lender,” said a spokesperson for Think Money. “Credit is still available, but people need to think carefully before applying, and approach a lender who specialises in loans for people in their financial situation.”

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