The global financial crisis and the recession has led to the near collapse of the banking system in the UK, and were it not for the money from the public purse – which is made up of taxpayers’ money – many banks would have run into even more serious problems than they already have encountered.

During the financial crisis many of the country’s major banks had to be bailed out with the use of taxpayers’ money, but despite this recent research has shown that there are only a few banks that will now lend to new customers. The figures were revealed after one financial website carried out an undercover investigation via lenders’ websites, and last month it found that only four lenders were offering loans to new customers.

Around twenty six lenders’ websites were put under scrutiny as part of the investigation, and those carrying out the investigation determined that banks appeared to be lending to only carefully selected customers, and even then they were charging high premiums for the privilege. Interest rates on personal loans were found to be at their highest in ten years, even though the Bank of England base rate stands at just 0.5 percent, which is the lowest in the history of the central bank. The average rate on a loan of £5000 was 12.6 percent, which reflect how huge the margin between bank loan rates and the base rate has become.

An example highlighted by the officials that carried out the investigation was the Barclays site, which read: ‘You could be eligible for a Barclayloan Plus if you’ve held a Barclays current account for more than 12 months, paid at least £1,000 into your account each month, managed your account well and have a good credit history.’

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