For many seeking a tenent loan, a catch 22 has made it nearly impossible. Banks are reducing their risks and many refuse to offer tenent loans at this time. However, the economy is forcing many to seek tenent loans in an attempt to stay current on their bills.
Head of Alliance Trust Research Centre Shona Dobbie stated, “Consumers are currently facing the worst financial reality ever in the 11 years of our study. All three of our indexed measurements* of consumer well-being have decreased over the past quarter. Households now have to spend more on their mortgage repayments and council tax bills, combined with the fact that their real earnings are failing to keep up with inflation, and so they are feeling poorer and having to cut back in some areas of spending. These bleak conditions are set to get worse for the rest of the year. The labour market has remained fairly strong up until now, but we predict that this will soften over the second half of 2008 as the number of people claiming unemployment benefit continues to rise.”
Bob Pannell from the CML added, “While there was a small month-on-month increase in activity, it represented a notable decline from a year ago. This continues the weaker picture seen in June and points towards the more subdued levels of lending we are likely to see in the second half of 2008.”
Related reading: Tenent Loan
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