Loan applications increase in January

The number of loan applications will increase in January as people try to cope with Christmas debts, according to Equifax.

Equifax says that there could be a problem with people finding it more difficult this year to get credit.

Neil Munroe, external affairs director for Equifax, said: "There's a common trend that people do borrow short-term over Christmas and try to consolidate that in the New Year, so there's always an increase in loan applications and mortgage applications."

He added that the issue is whether people will find it "more difficult to get credit" and at the moment the view is that if their credit score is only marginally acceptable for lenders "they may find it more difficult".

A report by creditaction showed that total personal debt in the UK at the end of October was £1,391 billion, which is £122 billion more than last year.

The research also showed that the average household debt is £55,877.


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This entry is filed under Mortgage lending.