As more Britons try to make ends meet, poor credit loans are becoming increasingly popular. However, many are finding that it is nearly impossible to get a poor credit loan unless they put their house up as collateral. For those seeking a poor credit loan, this may be too much to ask, particularly if they are already in economic trouble.Phil Dorgan, analyst at Panmure Gordon, commented: “The British consumer is more geared to house prices than almost any consumer in the world. There’s a high level of consumer debt as a proportion of GDP – if house prices fall it absolutely affects consumer spending and if we move into negative equity it will get even worse.”Howard Archer, of Global Insight, stated, “Even if the owners have no intention of selling, the fact that houses are falling in value affects their confidence.”CML Director Michael Coogan said: ‘There has been a resurgence of fixed-rate lending as borrowers are seeking certainty. This trend is likely to continue as the anticipation of future Bank base rate cuts has diminished. While tighter criteria make it more difficult for some borrowers to obtain a mortgage, they also reduce risk in a slower housing market,’ he added.
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