Consider home owner loans 'over other types of borrowing'
Published On 11 April 2007
A consumer website has urged people to think about applying for home owner loans instead of unsecured personal borrowing, as applications are less likely to be rejected.According to website MoneyExpert, 1.39 million have been refused credit for loans since September.
The website says that this figure is partly due to the increase in the use of online application process - which mean that consumers fail to consult with experts or check their credit status.
"Loan providers are getting tough so applicants shouldn't assume that, just because the loan is available online, acceptance is automatic," warned Sean Gardner, the chief executive of MoneyExpert.com.
"There are alternatives to unsecured loans. For example, home owner loans are often just as competitive as unsecured rates.
"If you're regularly getting refused credit take your time to research your options before reapplying - there are many free tools online which can help you," Mr Gardner added.
Recent figures from data providers KDB suggest that people in the UK may have to borrow more in the future as the average amount of disposable household income has fallen.
