Securing a borrowing arrangement will not be an easy task for British consumers in months to come, it has been claimed.

According to David Kuo, head of personal finance at Fool.co.uk, would-be credit users are fighting one another for resources that are becoming increasingly scarce.

Millions of Britons are dealing with debt management and money problems and without a strong borrowing record they could be facing a serious struggle to resolve their financial issues, Mr Kuo maintains.

"We urge borrowers to be aware that when they remortgage or apply for new loans, they are competing for a scarce resource," he said.

"They will be judged on merit and no one should take approval for granted."

Mr Kuo’s comments came in the wake of the prediction from the Bank of England that average house prices in the UK will fall by a third in the next few years.

Including mortgage arrears, the typical British household has a debt management burden worth just over £57,000, according to data from Credit Action.