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 like very much will change.
Pre market meltdown times had a home loan 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.
So where did the market meltdown come from and may 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 is known as a market meltdown.
In a credit crunch, lenders stop lending and begin 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 because 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 buyer, who had become used to freely extra cash 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 a simple one, YES!
If an appetite for investment in more risky markets returns, which you have to say it will, then pushing the limits commercially to gain extra percentage market share and profit, may lead to the whole thing happening yet again. Having said that, it will take 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 soon be forgotten.
So, how is the man on the street directly affected?
UK mortgage and loan lenders are releasing more new products on a regular basis and the very best mortgage deals of today are soon replaced tomorrow, but 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 you can look.
So how do https://thecardassociation.com add value?
Independent Financial Advisers (IFA's) are in a position to search the marketplace, compare mortgage rates on the client's behalf and secure a great mortgage rate to match the borrower's exact needs. Along with finance, IFA's can offer a good affordability service if you're looking to source good 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 comes in many guises, the internet has led to a plethora of channels being available for the consumer to utilise when seeking insight. 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 advantage of using their services to trawl the market 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 will find and tailor their financial advice accordingly and some finance price comparison websites are now offering both options under one roof to facilitate the needs of a far wider consumer group.