Secured Loans Becoming Harder To Find Consumers planning to apply for secured loans will find that they are increasingly difficult to come by, it has been revealed.
The Bank of England's quarterly Credit Conditions Survey asks lenders about their expectations for the coming months as well as their habits over the previous three.
And it has shown that the availability of secured loans was reduced by more than was expected in the third quarter of the year, with lenders predicting further declines to come.
But in the same period demand was also found to have decreased sharply, suggesting that less people are seeking loans in order to take out mortgages.
Unsecured loans have also dipped in availability - although these have dropped in line with what was predicted - and lenders expect this to continue towards the end of 2008.
The news followed yesterday's announcement by Nationwide that the average house price fell by 1.7 per cent last month, now standing at £161,797.
However, there was good news today as Six central banks, including the Bank of England, have cut interest rates by half a percentage point in an effort to steady the faltering global economy. No decision on UK rates had been expected until Thursday - and the move puts the interest rate at 4.5% from 5%.
The last time the Bank of England cut rates in a special meeting was on 18 September 2001 - when rates came down from 5% to 4.75%.
In the UK, some mortgage lenders also immediately passed on the rate cut to borrowers - trimming their variable rates.
European and US stock markets initially reacted well to the news but later turned lower as investors were unconvinced that the rate cuts would really solve the financial crisis.
If you are trying to find a secured loan, it is worth trying a reputable loan broker as they will have access to most loan products available on the market.
