Nice Loans.co.uk > News > Loan Plans Adjusted
UK loan providers adjust their lending plans.
The recent events in the financial markets have prompted several UK loans companies to adjust their loan plans. The general direction is a move to more conservative, or what the lenders are calling responsible, lending. It's aim is to expose the loan providers to lower risk while the markets settle down.
The areas of higher risk have typically been in the areas of lending to self-employed individuals and secured loans which push the higher limits of equity used to secure the loan. In the past lenders have been willing up to 125% of a property's value, but in the light of stable or falling house prices and the so called "credit crunch" these lending levels have been reduced to 85% aor below.
The most recent lenders to make announcements are First National and iGroup, both part of GE Money Home Lending.
Both product ranges have brought in a new 70% LTV level for self-certified loans and both have announced higher interest rates on many of their other loan plans. These rate increases range between 0.8% and 1.5% on First National's loans. The company indicated that it wants to keep it's loans as viable as possible for new customers but needs to limit it's exposure to risk while the markets are going through this uncertain phase.
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