British banks tighten unsecured loan criteria

Last post: Aug 2, 2018

British banks have recently tightened up their lending criteria for unsecured loans, reducing access to mainstream products for many UK customers. What has prompted the fresh regulations? Find out more...

In the second quarter of 2018, high street banks once again tightened up their lending criteria for unsecured loans. These measures had a knock-on effect on loan accessibility for UK customers, with approvals for loans falling slightly from April-June this year.

The new, freshly tightened regulations and credit scoring criteria have been described as "significantly harder" for customers to meet, preventing would-be clients who are perceived as "riskier" candidates from obtaining unsecured finance.

High street banks have tightened their lending criteria in response to rising levels of credit use in the UK. Levels of consumer credit have been growing in recent years, prompting some concerns about the nation's rate of borrowing – and it's potential impact on the British economy.

These new regulations, however, come at a difficult time for finance seekers. With house prices in many areas still at all time highs, the cost of living in the UK is not cheap at the moment – particularly with wages continuing to stagnate.

This combination of factors makes it tough for everyday people when emergency expenses such as home repairs and veterinary bills crop up. In such cases, loans from mainstream banks are increasingly inaccessible, forcing borrowers to seek unsecured loans from alternative sources.

At Choice Personal Loans we connect borrowers with accessible, unsecured loans from their ideal lenders. To find the best fit for you, contact our finance experts today.