The continuing squeeze on credit that has affected the global economy is being felt much closer to home now as lenders like the Nationwide Building Society are more wary of who they lend money to than ever before.
It is both commercial and consumer lending that is being hit, with the Nationwide Building Society now declining to offer any loans to new commercial customers, preferring instead to work only with those businesses they already know. The building society feels that now is the time to stand by existing clients, ensuring they will be there for them should they need assistance rather than chasing after new business that could negatively affect everyone.
On the consumer side lenders are even more wary. As the Nationwide Building Society has seen the desire for credit and the buy now pay later mentality is everywhere, with many people living beyond their means through the use of credit. It is feared that, without a more prudent approach, there could be difficult times ahead for many.