A warning to easy loan seekers

Released on: February 22, 2008, 3:47 am

Press Release Author: amenda dorothy

Industry: Financial

Press Release Summary: The enduring credit crunch prevailing in the UK financial
market has sealed the way for 100% loan options. People waiting for easy loan
options will face disappointment.

Press Release Body: London (Loans-park) February 21, 2008: The final alarm is here.
The effect of the disastrous credit crunch is leading to a situation where 100%
deals are becoming harder to find. Lenders are no more in the condition to afford
the luxury of providing 125% of the value of property as loan. This week four
lenders pulled the plug on deals offering an unsecured loan. Earlier, their offers
allowed first-time buyers to get on the property ladder without a deposit. They were
also criticised for allowing people take on more debt.

This move will definitely lead to higher repayments for first-time buyers when they
come for re-mortgage. Giant lender Alliance and Leicester has confirmed that it is
removing its 125% Plus Mortgage. Earlier, it offered a mortgage of up to 95%, along
with an additional unsecured loan. Stephen Leonard, director of mortgages at
Alliance and Leicester, blamed \"market conditions\" as the reason for this tough

Near about 20,000 Britons take out these loan deals each year. The move will affect
those who were intending to enter the housing market. It will also affect those
requiring re-mortgage. They will definitely face higher repayments due to lack of
competitive deals. The earlier deals were very popular with those who wanted a loan
on top of the mortgage, as they did not have the money to pay a deposit or wanted to
make a start on home improvements.

For additional information on the news that is the subject of this release (or for a
sample, copy or demo), contact Webmaster or visit http://www.loans-park.co.uk

Web Site: http://www.loans-park.co.uk

Contact Details: Parade House
135, The Parade High Street
WD17 1NS
0800 097 3653

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