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Reduced availability of credit a continuing trend "for the next few months"
The availability of credit may continue to fall in the second quarter of 2008, economic research consultancy Capital Economics has claimed.
Vicky Redwood, UK economist at Capital Economics, said: "For the next few months this trend will continue, certainly, because of the continuing problems in the money market."
The impact of this trend on the average household has been felt on both secured and unsecured loans, she added.
If someone was to apply for a credit card they would have less chance of getting one and if they already hold one they are likely to have their limit reduced, Mr Redwood noted.
"On the mortgage side, it is either requiring borrowers to have a bigger deposit than before if they take out a mortgage or paying higher mortgage fees", she concluded.
This month's International Monetary Funds Global Financial Stability Report says that UK banks have had "significant exposure to unsecuritised loans" and it may take a while to recognise losses which relate to holdings or securities.