Does Independent Financial Advice Find the Best Deal For You?
After what feels as though 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 is going to change.
Pre credit crunch times 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.
Where did the credit crunch come from and could it happen again?
THE UNITED STATES finance markets imploded in the 4th quarter of 2007 due to bad credit on the balance sheets of large financial institutions, which ultimately caused what's known as a credit crunch.
In a credit crunch, lenders stop lending and begin 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 however the safest loans.
merchant services agent program have been flooded with accessible borrowed money because the mid 90's, but 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 credit cards for expensive purchases such as luxurious holidays and smart cars.
The solution 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 it will, then pushing the limits commercially to get extra percentage market share and profit, may lead to the whole thing happening all over 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 is the man on the road 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 rate 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 marketplace, compare mortgage rates on the client's behalf and secure an excellent mortgage rate to suit the borrower's exact needs. Along with finance, IFA's can offer a good affordability service if you are looking to source top quality, value for money, but cheap life insurance cover and pension plans, with advice that is specifically tailored to the average person or families needs.
Financial advice is available in many guises, the web has led to various channels being designed for the buyer to utilise when seeking help and advice. 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 advantage of using their services to trawl the market and find you the best deals available, but there is still a disagreement 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 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.