Does Independent Financial Advice Find the Best Deal For You
After what feels like a long time in recession, lenders remain not keen to lend and before UK general election is over, it doesn't feel just like very much will change.
Pre market meltdown times had a home loan 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 available to the consumer.
So where did the market meltdown come from and may it happen again?
THE UNITED STATES 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 market meltdown.
In a market meltdown, lenders stop lending and begin hoarding cash because they are afraid of rising debt, resulting in bankruptcies and loan or mortgage defaults. They charge higher interest levels 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 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 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 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, may 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 come back, but good times will return and the painful effects will be forgotten.
So, how is the man on the street directly affected?
The Card Association and loan lenders are releasing more services on a regular basis and the very best mortgage deals of today are soon replaced tomorrow, however the 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 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 market, compare mortgage rates on the 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 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 individual or families needs.
Financial advice is available in many guises, the internet has led to various channels being designed for the consumer to utilise when seeking insight. Finance related price comparison websites have the added advantage of being 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 an argument for utilizing the services of an area to you, independent financial adviser. The IFA can 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 now offering both options under one roof to facilitate the requirements of a far wider consumer group.