Just one year since the start of the credit crunch, uSwitch.com has taken a closer look at the damage caused by the financial tsunami. It has found:
• Total mortgage lending and unsecured personal loans have plummeted by £11 billion from the second quarter of 2007 to the second quarter of 2008
• Gross lending on mortgages has fallen on average £2.5 billion from quarter to quarter in the last year - a total fall of £10 billion
• Comparing the 12 month period from July 2006 to June 2007 to July 2007 to June 2008, mortgage lending has dropped by almost £20 billion
• The number of unsecured loans issued has dropped by an average of 39,338 or £283 million each quarter over the past year. This decline totals £1.1 billion - over 157,000 loans when comparing the second quarter of 2007 to the second quarter of 2008
Simeon Linstead, head of personal finance at uSwitch.com, commented: "In just 12 months, this economic landslide has sent the consumer lending market into disarray. Our research has confirmed that both mortgage lending and unsecured loans are drying up by the day. For those with perfect credit records, it's unlikely this will be an issue, but others it could be problematic.
"The reduction in the amount of credit issued by providers is not the only problem facing consumers. Best buy mortgage and unsecured loan deals have become more expensive over the past twelve months. However, the market is vast and there are still competitive rates for those who take the time to compare the offers available."
