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Financial recovery 'yet to impact on personal loans'
The personal loan market has yet to benefit from the economic recovery seen in other areas, research has suggested.
Figures from Moneysupermarket.com have revealed that eight out of nine major lenders are still only offering loans to their existing customers, while average rates have increased over the year.
The number of people looking for a loan through the comparison site was found to be up 20 per cent this year, despite new lending dropping by 28 per cent.
Tim Moss, head of loans and debt at Moneysupermarket.com, said: "The financial crisis may have eased but this hasn't filtered through to the personal loan market yet. We have seen the banks go from choosy to almost locking down completely.
"By restricting loans to existing customers only, banks are able to manage their lending more cautiously."
Recent figures published by the Office of Fair Trading found that around one in two borrowers in the UK are relying on unsecured doorstep loans to get by.