After what feels as though a long time in recession, lenders remain 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/">dual pricing merchant services had a home loan market providing in excess of 25,000 different mortgage deals and loans galore, but today the UK markets have less than 5000 mortgage products on offer to the consumer.
So where did the credit crunch come from and could it happen again?
The US finance markets imploded in the 4th quarter of 2007 due to bad credit on the balance sheets of large finance institutions, which ultimately caused what's known as a credit crunch.
In a market meltdown, lenders stop lending and start hoarding cash because they're 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 however the safest loans.
The UK economy had been flooded with easy to access borrowed money since the mid 90's, however 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 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 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, could lead to the whole thing happening all over again. Having said that, it will require sometime to get there, as returning confidence to dabble by investors will be slow to come back, but good times 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 on a regular basis and the very best mortgage deals of today are soon replaced tomorrow, however the 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 is out there found, if you know where to 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. Besides finance, IFA's can offer a good affordability service if you're looking to source top quality, affordability, but cheap life insurance coverage 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 a plethora of 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 benefit of utilizing their services to trawl the marketplace and find you the very best deals available, but there's 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 may have and tailor their financial advice accordingly and some finance price comparison websites are now offering both options under one roof to facilitate the requirements of a far wider consumer group.