Does Independent Financial Advice Find the Best Deal For You?
After what feels like an eternity in recession, lenders are still not keen to lend and before UK general election has ended, it doesn't feel just like very much will change.
Get more info had a home loan market providing in excess of 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 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 finance institutions, which ultimately caused what is known as a credit crunch.
In a credit crunch, lenders stop lending and begin hoarding cash because they are 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 have 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 consumer, who had become used to freely spending money they didn't have, but could easily access on bank cards for expensive purchases such as for example 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, which you have to say it will, then pushing the limits commercially to gain extra percentage market share and profit, could 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 memories will return and the painful effects will be forgotten.
So, how may be 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 receiving 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.
So how do Independent Financial Advisers add value?
Independent Financial Advisers (IFA's) are well placed 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. Besides finance, IFA's can provide a good value for money service if you're looking to source top 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 web has led to a plethora of channels being available for the buyer 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's still an argument for utilizing the services of a local to you, independent financial adviser. The IFA may take the time to understand any unusual circumstances that you may have and tailor their financial advice accordingly and some finance price comparison websites are actually offering both options under one roof to facilitate the requirements of a far wider consumer group.