After what feels as though an eternity in recession, lenders are still not keen to lend and until the UK general election is over, it doesn't feel just like very much will change.
Pre credit crunch times had a mortgage market providing more than 25,000 different mortgage deals and loans galore, but today the united kingdom markets have significantly less than 5000 mortgage products on offer to the consumer.
Where did the credit crunch come from and could it happen again?
THE UNITED STATES finance markets imploded in the 4th quarter of 2007 due to bad credit on the total amount sheets of large financial 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 have been flooded with accessible borrowed money because the mid 90's, however the market meltdown meant that tightened credit would spell trouble for companies who needing funding in the form of loans to pursue their business plans and the consumer, 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 solution to could it happen again is a simple one, YES!
If an appetite for investment in more risky markets returns, which you have to say this will, then pushing the limits commercially to get extra percentage market share and profit, could lead to the whole thing happening all over again. Having said that, it will require sometime to obtain there, as returning confidence to dabble by investors will be slow to return, but memories will return and the painful effects will be forgotten.
So, how is the man on the street directly affected?
UK mortgage and loan lenders are releasing more services every day and the very best mortgage deals of today are soon replaced tomorrow, however the very good news is that the deals are getting better and better. The percentage levels that lenders will loan to is increasing and a 90% mortgage, with a competitive interest rate is out there to be found, if you know where to look.
Just how do Independent Financial Advisers add value?
Independent Financial Advisers (IFA's) are in a position to search the market, compare mortgage rates on their client's behalf and secure a great mortgage rate to match the borrower's exact needs. Besides finance, IFA's can provide a good value for money service if you're looking to source top quality, value for money, but cheap life insurance cover and pension plans, with advice that is specifically tailored to the individual or families needs.
veronikawoell.com is available in many guises, the web has led to various channels being designed for the buyer to utilise when seeking insight. Finance related price comparison websites have the added benefit of being truly a one stop look for all mortgage, loan and insurance needs. By completing your details once, you have the advantage of using their services to trawl the market and find you the best deals available, but there is still an argument for using the services of an area for you, independent financial adviser. The IFA can 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 needs of a far wider consumer group.