After what feels like an eternity in recession, lenders remain not keen to lend and before UK general election is over, it doesn't feel just like very much will probably change.
Pre market meltdown times had a mortgage market providing more than 25,000 different mortgage deals and loans galore, but today the UK markets have less than 5000 mortgage products available to the consumer.
So where did the market meltdown come from and could it happen again?
The US 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 is known as a market meltdown.
In a market meltdown, lenders stop lending and start hoarding cash because they are afraid of rising bad debts, resulting in bankruptcies and loan or mortgage defaults. More helpful hints charge higher interest levels 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 since the mid 90's, however 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 bank 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, which you have to say this will, then pushing the limits commercially to gain 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 undoubtedly be slow to return, but good times will return and the painful effects will be forgotten.
So, how may be the man on the road directly affected?
UK mortgage and loan lenders are releasing more services every day 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 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 market, compare mortgage rates on their client's behalf and secure an excellent mortgage rate to suit the borrower's exact needs. As well as finance, IFA's can offer a good value for money service if you are looking to source good quality, value for money, but cheap life insurance cover and pension plans, with advice that's specifically tailored to the individual or families needs.
Financial advice is available in many guises, the internet has led to a plethora of channels being designed for the buyer to utilise when seeking insight. Finance related price comparison websites have the added benefit 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 marketplace and find you the best deals available, but there is still a disagreement for utilizing the services of an area to 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 plus some finance price comparison websites are actually offering both options under one roof to facilitate the requirements of a far wider consumer group.