Does Independent Financial Advice Find the Best Deal FOR YOU PERSONALLY?
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 just like very much is going to change.
Independent Financial Advisers Oxford had a mortgage market providing in excess of 25,000 different mortgage deals and loans galore, but today the united kingdom markets have significantly less than 5000 mortgage products on offer to the consumer.
So where did the credit crunch come from and may it happen again?
The US finance markets imploded in the 4th quarter of 2007 because of bad credit on the balance sheets of large financial 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, 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, but 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 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, could lead to the whole thing happening all over again. Having said that, it will take sometime to obtain there, as returning confidence to dabble by investors will be slow to return, but memories 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 best mortgage deals of today are soon replaced tomorrow, but the 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 to look.
Just 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. In addition to 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's 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 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 benefit of utilizing their services to trawl the market and find you the best deals available, but there's still a disagreement for using the services of an area to 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 plus some finance price comparison websites are now offering both options under one roof to facilitate the requirements of a far wider consumer group.