The trend of lenders suspending
Both First Direct and the Co-Operative Bank have ceased offering deals to new clients as a result of the credit crunch.
Rebecca Atkinson, news editor of Moneywise.co.uk, explained that other firms such as the Halifax and Nationwide have introduced a tier system which does not allow people with less than a 25 per cent deposit to purchase a new
“They have the choice to either put up rates or suspend lending altogether,” she said. “Increasing rates is the more popular route for lenders to go because the suspending of lending can damage reputations.”
It is fairly likely that other providers will stop offering new customers
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