After what feels as though a long time in recession, lenders remain 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 home loan 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.
So where did the credit crunch come from and could it happen again?
THE UNITED STATES finance markets imploded in the 4th quarter of 2007 because of bad credit on the balance sheets of large finance institutions, which ultimately caused what's known as a market meltdown.
In a credit crunch, lenders stop lending and start hoarding cash because they are afraid of rising bad debts, resulting in bankruptcies and loan or mortgage defaults. They charge higher interest rates in a bid to stem the flow of business or reject all but the safest loans.
The UK economy have been flooded with easy to access borrowed money because the mid 90's, but the market meltdown 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 solution to could it happen again is a simple one, YES!
If Pension planning Oxfordshire for investment in more risky markets returns, which you have to say it will, then pushing the limits commercially to get extra percentage market share and profit, may lead to the whole thing happening all over again. Having said that, it will take sometime to get there, as returning confidence to dabble by investors will undoubtedly be slow to come back, but memories will return and the painful effects will soon be forgotten.
So, how is the man on the road directly affected?
UK mortgage and loan lenders are releasing more services on a regular basis and the 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 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 the 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 affordability 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 average person or families needs.
Financial advice is available in many guises, the internet 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 advantage of being a one stop look for all mortgage, loan and insurance needs. By completing your details once, you have the advantage of utilizing their services to trawl the marketplace and find you the very best deals available, but there is still a disagreement for using the services of a local for you, independent financial adviser. The IFA may take the time to comprehend any unusual circumstances that you may have and tailor their financial advice accordingly plus some finance price comparison websites are now offering both options under one roof to facilitate the requirements of a far wider consumer group.