Does Independent Financial Advice Find the Best Deal FOR YOU PERSONALLY?
After what feels like an eternity in recession, lenders remain not keen to lend and before UK general election has ended, it doesn't feel like very much will probably change.
Pre market meltdown times had a mortgage market providing in excess of 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 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 total amount sheets of large finance institutions, which ultimately caused what is known as a market meltdown.
In a market meltdown, lenders stop lending and start hoarding cash because they are afraid of rising debt, leading to 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 had been flooded with accessible 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 extra cash they didn't have, but could easily access on bank cards for expensive purchases such as for example luxurious holidays and smart cars.
Additional resources 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 this will, then pushing the limits commercially to get extra percentage market share and profit, could lead to the whole lot 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 services on a daily 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 is out there found, if you know where you can look.
Just how do Independent Financial Advisers 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 suit the borrower's exact needs. In addition to finance, IFA's can provide a good value for money service if you are looking to source top quality, value for money, but cheap life insurance coverage cover and pension plans, with advice that is specifically tailored to the individual or families needs.
Financial advice is available in many guises, the web has led to various channels being designed for the consumer to utilise when seeking help and advice. Finance related price comparison websites have the added advantage of being truly a one stop shop 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 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 understand 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.