The official end of the credit crisis occured some time ago now, and at that point the finance sector breathed a united sigh of relief.
It was of course the heads of this industry who were responsible for the credit crisis in the first instance due to the extremely reckless lending practices that had prevailed for some considerable time.
For a few years prior to the credit crunch, many lenders granted money to people, both privately and commercially, to individuals and companies who were going to be in the no position to afford the repayments of such financial products as commercial loans, secured loans, mortgages, remortgages, buy to let mortgages etc.
Some of the reasons why these people were not able to pay these loans was because many of them were granted on a self declartion of income basis which caused many to hike up what they in fact earned in order to buy the homes, businesses, and so on that they wanted.
This was coupled by the fact of the availablity of 125% LTV mortgages, remortgages and secured loans, and it should have been very obvious to any sane person that the whole structure of these loans would fall like a house of cards.
The worse aspect of the lax underwritting criteria happened in the buy to let and property developing market where so called business men were lent millions, and some of them, although not all them of course, were little more than rogues.
The inevitable crash occured, and it became all to apparent that the financial fat cats cared more about their own bonuses than they did about their customers or those who employed them.
During the recession matters concerning all forms of lending went to the opposite extreme, and lending critria became so strict that many people simply could not obtain a business loan, secured loan, mortgage etc.
For example, vast sections of people wanting to move house or to purchase their first property could not obtain a mortgage, and with best loan to value for first time buyers being limited to 75% of the property value, many would be home buyers were forced to rent which naturally pushed up the rental value of many properties.
During this period it was almost impossible to obtain a buy to let mortgage.
Buy to let mortgages are now easier to obtain, although the lenders are now granting these mortgages with common sense prevailing.
Secured loan rates have also been reduced to 7.The 7.9% rate is only available for those with a 40% deposit.
There are now more people eligible for mortgages and remortgages with the advent of 95% deals now on offer for such building societies as the Nationwide.
New lower rates have also been introduced for mortgages and remortgages which makes it a very good time to apply, and fixed rate mortgages are available for only 2.70% meaning that a homeowner will not only avail himself of a very low rate, but will also know exactly how much he will be paying each month for certain number of years.
It is unlikely that all these loans will ever be as easy to obtain as they were up to the start of 2007, but everything at last seems to be moving in the correct fashion.
It was of course the heads of this industry who were responsible for the credit crisis in the first instance due to the extremely reckless lending practices that had prevailed for some considerable time.
For a few years prior to the credit crunch, many lenders granted money to people, both privately and commercially, to individuals and companies who were going to be in the no position to afford the repayments of such financial products as commercial loans, secured loans, mortgages, remortgages, buy to let mortgages etc.
Some of the reasons why these people were not able to pay these loans was because many of them were granted on a self declartion of income basis which caused many to hike up what they in fact earned in order to buy the homes, businesses, and so on that they wanted.
This was coupled by the fact of the availablity of 125% LTV mortgages, remortgages and secured loans, and it should have been very obvious to any sane person that the whole structure of these loans would fall like a house of cards.
The worse aspect of the lax underwritting criteria happened in the buy to let and property developing market where so called business men were lent millions, and some of them, although not all them of course, were little more than rogues.
The inevitable crash occured, and it became all to apparent that the financial fat cats cared more about their own bonuses than they did about their customers or those who employed them.
During the recession matters concerning all forms of lending went to the opposite extreme, and lending critria became so strict that many people simply could not obtain a business loan, secured loan, mortgage etc.
For example, vast sections of people wanting to move house or to purchase their first property could not obtain a mortgage, and with best loan to value for first time buyers being limited to 75% of the property value, many would be home buyers were forced to rent which naturally pushed up the rental value of many properties.
During this period it was almost impossible to obtain a buy to let mortgage.
Buy to let mortgages are now easier to obtain, although the lenders are now granting these mortgages with common sense prevailing.
Secured loan rates have also been reduced to 7.The 7.9% rate is only available for those with a 40% deposit.
There are now more people eligible for mortgages and remortgages with the advent of 95% deals now on offer for such building societies as the Nationwide.
New lower rates have also been introduced for mortgages and remortgages which makes it a very good time to apply, and fixed rate mortgages are available for only 2.70% meaning that a homeowner will not only avail himself of a very low rate, but will also know exactly how much he will be paying each month for certain number of years.
It is unlikely that all these loans will ever be as easy to obtain as they were up to the start of 2007, but everything at last seems to be moving in the correct fashion.