Lenders in the UK are still struggling and as a result, there are fewer available bad credit loans. This has left many with few options and the economy is definitely feeling the backlash. Right now, the fees for bad credit loans are higher than ever and the few banks that offer these loans are making it very difficult to get an approval.
Michael Coogan, at the Council of Mortgage Lenders, said: “Neither the cost nor the availability of wholesale funds has improved for lenders since the Bank of England launched its special liquidity scheme. This means that cost and availability to customers has not improved either. And this in turn means that consumers are now beginning to give up and demand is falling, with confidence in the housing market falling with it.”
Vicky Redwood, at Capital Economics, said: “An interest rate cut is desperately needed to support the rapidly deteriorating economy. But inflationary pressures continue to tie the monetary policy committee’s hands. The chances of an interest rate rise have receded significantly. But with a rate cut still some way off, the cost of keeping a lid on inflationary pressures now looks like a strong chance of a technical recession.”
Related reading: Bad Credit Loan
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