Santander bank is making an important decision, opting to cut back lending. That decision comes after Bank of England expressed concern over personal debt holdings. Related banks may follow suit with their announcements in the coming days. That has reduced mortgage lending and loans for cars recently as well. These decisions could have wide ranging implications for consumers on the market. The chief executive could face criticism regarding their decisions as news stories start to unfold.
Key Takeaways:
- Santander has made the decision to cut back on lending services. Both mortgages and car loans will be reduced for consumers.
- That decision is based around concerns from Bank of England. The bank was worried about personal debt and other important numbers.
- Lenders have pledged to retain popular services for everyday customers. Santander is likely to remain one of the most popular financiers in Europe.
“Bostock said intense competition is driving down interest rates to historically low levels, and accused competitors of offering better rates on car loans and credit cards than are charged to much more secure mortgage customers.”