After what feels as though an eternity in recession, lenders are still not keen to lend and until the UK general election has ended, it doesn't feel just like very much is going to change.
https://redfynn.com/partner/">ISO agent programs had a mortgage market providing more than 25,000 different mortgage deals and loans galore, but today the united kingdom markets have less than 5000 mortgage products on offer to the consumer.
Where did the credit crunch come from and may it happen again?
The US finance markets imploded in the 4th quarter of 2007 due to bad credit on the total amount sheets of large finance institutions, which ultimately caused what's known as a credit crunch.
In a credit crunch, lenders stop lending and start hoarding cash because they are afraid of rising bad debts, leading to bankruptcies and loan or mortgage defaults. They charge higher interest levels in a bid to stem the flow of business or reject all but the safest loans.
The UK economy had been flooded with easy to access borrowed money because the mid 90's, but the credit crunch meant that tightened credit would spell trouble for companies who needing funding by means of loans to pursue their business plans and the buyer, who had become used to freely spending money they didn't have, but could easily access on credit cards for expensive purchases such as for example luxurious holidays and smart cars.
The answer to could it happen again is really a simple one, YES!
If an appetite for investment in more risky markets returns, that you've to say it will, then pushing the limits commercially to gain extra percentage market share and profit, may lead to the whole lot happening yet again. Having said that, it will take sometime to obtain there, as returning confidence to dabble by investors will undoubtedly be slow to return, but good times will return and the painful effects will be forgotten.
So, how is the man on the road directly affected?
UK mortgage and loan lenders are releasing more services every day and the best mortgage deals of today are soon replaced tomorrow, however the very good news is that the deals are receiving better and better. The percentage levels that lenders will loan to is increasing and a 90% mortgage, with a competitive interest is out there found, if you know where you can look.
So how do Independent Financial Advisers add value?
Independent Financial Advisers (IFA's) are in a position to search the marketplace, compare mortgage rates on their client's behalf and secure a great mortgage rate to suit the borrower's exact needs. As well as finance, IFA's can provide a good value for money service if you are looking to source top quality, affordability, but cheap life insurance cover and pension plans, with advice that is specifically tailored to the individual or families needs.
Financial advice comes in many guises, the web has led to various channels being available for the consumer to utilise when seeking help and advice. Finance related price comparison websites have the added benefit of being truly a one stop shop for all mortgage, loan and insurance needs. By completing your details once, you have the benefit of utilizing their services to trawl the market and find you the very best deals available, but there is still a disagreement for utilizing the services of an area for you, independent financial adviser. The IFA may take the time to comprehend any unusual circumstances that you will find and tailor their financial advice accordingly and some finance price comparison websites are actually offering both options under one roof to facilitate the requirements of a far wider consumer group.