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Tighter lending conditions emerge in credit crunch
People whose financial histories fall outside of specific thresholds are vulnerable to the tighter lending practices emerging in the wake of the global credit crunch, according to Fool.co.uk.
The Bank of England's defined danger thresholds show that higher-risk borrowers, including those with debt repayments totalling over 55 per cent of their income or net worth less than 33 per cent of their income could have difficulty obtaining a personal loan in the current credit market.
According to David Kuo, head of personal finance at Fool.co.uk, consumers should take a closer look at their finances to make sure they are eligible for a loan by drawing up a statement of affairs snapshot.
"The snapshot will tell, at a glance, whether you fall into one of the 'at-risk' categories," he said.
He added that by ensuring that they stay within the defined thresholds, consumers will be "better placed" to avoid unexpected rejection.
Today, the Royal Institution of Chartered Surveyors said that it expects "further weakness in activity" in the lending market over the next few months.