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Expert: Banks still in the mood to lend money
Banks have to lend money to make money and they "still have an appetite" to do just that despite the credit crunch, Equifax has said.
The company's external affairs director Neil Munroe remarked that banks will "continue to lend money but will just be a little more investigative when an application is being made to make sure that it's the right person who's going to repay them".
Mr Munroe admitted that in the current economic climate there is a risk for people to go to a bank to borrow and be rejected. They will then have to go to the next tier of lenders "where it's obviously more costly".
But if they really need to borrow the money, this is what they will have to do, he asserted, adding that some people might decide not to get a loan after all but it depends on the "individual and the circumstances at the time".
Total personal debt in the UK stood at £1,421 billion at the end of February 2008, an increase of around £111 billion from 12 months earlier, according to Credit Action.