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Loans Providers review products

One of the impacts of the ongoing credit crunch situation facing UK providers of loans is the rate at which loan products are being withdrawn from the marketplace.

Over the past few months we have seen most loan providers both increase interest rates and tighten up lending criteria on their product ranges, but we have also seen a number of loans being withdrawn from the market and some companies closing for business completely.

One of the early casualties was National Gaurantee, the sub prime mortgage provider, who exited the market early in the year, but they have been followed by a number of other mortgage providers, and more recently a batch of unsecured and secured loans companies have trimmed their portfolios.

This week Liverpool Victoria announced it would no longer provide unsecured loans and now Money Partners have pulled their secured loans range. Of course interest rates have also been climbing steadily and the days of 6% cheap personal loans are long gone for the moment. The current best buys fall around the 7% mark now, but with an interest rate cut still predicted in the coming months, once the credit situation has settled, we can probably look forward to a slight fall in rates again in the new year.

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