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Government urges banks to increase loans and mortgage approvals |
Written by Andy Adams
Monday, 01 December 2008
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At the moment the government has a great interest in the UK and world banking system; many pundits believe that for too long the banking system and specifically the inter-bank lending has run amuck and is one of the many reasons for our current credit crisis. Now that banks have gone into lockdown mode not lending any money to each other, being bailed out by the government in many cases has cast the watchful eye of the tax payer on their activities such as irresponsible lending and 100%+ mortgages. The trouble is that the people who really do need mortgages and other loans for vital expenses like home repairs or buying a home full stop are finding no one will take a risk no matter how small it may be. Many banks are much more scrutinising when assessing each mortgage or loans application, the slightest bad point on your credit rating could result in the loss of a mortgage for a new home and so many people hoping to take advantage of the rarity of house prices being lower than previous years. The government has urged banks to not fall into the trap of not approving any form of lending whether its homeowner loans or personal loans as this can only further hurt the country and its economy in the coming years. A Bank of England rate cut of 3% earlier this year has had little effect for those seeking new lending options and only those on tracker or variable based lending have seen an advantage. It is hoped that next year with the usual crowd of people looking for loans to help recover from the Christmas period that loans providers will try and lower rates to tempt people to take out loans but also a predicted further base rate cut may also encourage banks to cut us a break. Anyone looking to get a loan or a mortgage should definitely seek out advice before blindly applying for any loan they can as this could hurt your credit rating if you are rejected. A loans advisor could assess what loans you are more likely to get approved for and help you find the best solution for your situation and more likely to solve your financial woes. Article Source: http://www.ArticleBlast.com |
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