2 October 2008
Consumer demand for secured loans fell in the third quarter of this year, according to research carried out by the Bank of England. It found that following a sharp decline in secured lending demand over the last three months, loan providers are expecting to see further a fall during the fourth quarter. During the same period, lenders said they had reduced the availability of secured loans more than they had anticipated as a result of economic concerns and falling house prices. They also tightened the terms and conditions for borrowers taking out secured loans and expect to continue to do so over the coming months, the research shows. Default rates on secured loans were reported to have risen during the third quarter as consumers experienced payment difficulties. Meanwhile, a growing number of economists are predicting that the Bank of England will cut interest rates next week following further bad news on the prospects for the UK economy.
© 2008 Adfero Ltd
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