Lenders to be 'more cautious'

Mon, 10 Dec 2007

Recent financial conditions are likely to see lenders become more cautious, according to one expert.

Helen Saxon, spokesperson for the Finance and Leasing Association (FLA), said that the majority of lenders continue to offer their full range of products, meaning most people will be able to obtain credit .

However, personal loan lenders are likely to become increasingly cautious in the wake of the credit crisis, Ms Saxon suggested.

"The current credit crunch is unprecedented, so we don't know what the lasting effects on lending and on the lending market will be," she stated.

However, "prudence" is likely to "prevail" over the short-term, she added.

A report by the FLA published at the beginning of the month found that between June 2006 and June 2007, the rate of growth in unsecured lending reduced by 7.5 per cent to 5.2 per cent.

Ms Saxon said that this decline can only be partly attributed to the credit crunch.
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