Does Independent Financial Advice Find a very good Deal For You?
After what feels as though a long time in recession, lenders remain not keen to lend and before UK general election has ended, it doesn't feel like very much is going to change.
Pre market meltdown times had a home loan market providing more than 25,000 different mortgage deals and loans galore, but today the UK markets have significantly less than 5000 mortgage products available 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 because of bad credit on the total amount sheets of large finance institutions, which ultimately caused what is known as a credit crunch.
In a market meltdown, lenders stop lending and start hoarding cash because they're afraid of rising bad debts, leading to bankruptcies and loan or mortgage defaults. Visit this site charge higher interest rates 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, however the credit crunch 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 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, that you've to say this will, then pushing the limits commercially to get extra percentage market share and profit, may lead to the whole thing happening yet again. Having said that, it will take sometime to obtain there, as returning confidence to dabble by investors will be slow to return, but good times 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 very best mortgage deals of today are soon replaced tomorrow, but 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 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 suit the borrower's exact needs. As well as finance, IFA's can offer a good affordability service if you are looking to source top quality, affordability, but cheap life insurance cover and pension plans, with advice that's specifically tailored to the average person or families needs.
Financial advice comes in many guises, the internet has led to various channels being available for the buyer to utilise when seeking insight. Finance related price comparison websites have the added advantage of being truly 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 market and find you the best deals available, but there is still an argument for using the services of a local to 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.