The amount of new adverse credit secured loans continues to fall as banks try to diminish their risks as much as possible. The figures for April and May were very disheartening to those that need an adverse credit secured loan, as the rates for new approvals fell to a new low. Experts feel that the current conditions in the adverse credit secured loan industry are going to continue for at least several months and it may soon get even harder to get an approval for an adverse credit secured loan, particularly with certain banks.Michael Coogan, the director general of the CML, said: “Monthly house purchase lending volumes continue to be lower than last year’s levels and there will be a further weakening in coming months as recent approvals data has shown.”The squeeze on mortgage funding has led many lenders to tighten their lending criteria. While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market. “There has been a resurgence of fixed-rate lending as borrowers are seeking certainty. This trend is likely to continue as the anticipation of future Bank base rate cuts has diminished.”
Related reading: Adverse Credit Secured Loan
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