Only eight months to complete, was that almost nobody had heard of or used, now we turn on the TV, radio, or take paper and there is .... Right in our face ... "Credit crunch". In fact, it is so often the question, now it is difficult to understand what it means for businesses and individuals. Of course we realize that those with dubious credit ratings, which are therefore at high risk for a developer, now have no chance of funding in today's market, butwhat is that control and manage any debt or debts, good credit, solid work or business with an honest account? As the credit crunch will impact on them? The answer is, surprisingly, it is very difficult.
Ratings for the individual in a system of rating points 0000-1000
Although these assessments are different, this is a guide for the evaluation and their significance. v.poor Less than 400: 400 to 600 bad: 600-700 Average: 700 to 750 mm above average: good 750-800: top800 is top notch.
125 Ltv Home Loan
Companies also get a "roughing up" of donors today. Even if your company has the unfinished business for the past three years, but one of the directors are under a personal credit v.good, it is more likely to be rejected the first to get the funding is not. Today, the company received only the accounts to generate enough revenue, but administrators who must all show, very clean.
No matter where or with whom you deal, if you want any form of funding under the 'Credit Search' asthe first hurdle. Those who are different, just lie to you, who tells them, very bad. If you pass the first hurdle is the probability that the promoter potential "drill down" through your personal files and financial information can request more information. This is a relatively new requirement by most lenders, created by donors need to minimize possible losses from defaults.
In this article I will deal with two important acquisitions that are more likelyto make in your life, property and vehicles. We'll see how the change of attitude as the lender and those of us who never has historically had a problem affects funding.
I do not think I need to explain how the funding for the construction work, but I do not think many people give, such as the purchase of vehicles should be encouraged. Take the auto leasing is the fastest growing method of owning a new vehicle. You see an ad for a vehicle with a monthly amount that you knowcan afford. You have expressed your vehicle, there is a complicated process that few customers ever give a thought.
A good agent will first run a credit score looking for you. This is to provide the best advice and put your proposal to the donor, most likely for you. Suppose that the research credit is ok, the broker seeks and negotiates the best price for your chosen vehicle, with a label "main dealer" to ensure that you get the best deal.Subsequently, the broker, an investor who is willing to purchase outright your vehicle chosen by the retailer is found, but before the carrier that wants to know what it is for a client's risk. The agent must cease to be a step forward to protect your interests, because if it failed to mount a policy lender and then rejected its refusal, the way in which the carrier point of view of your next application will be affected.
Bad brokers, and there are a lot of them,as a seller are cheap. They will tell you what you want to hear, not hope to keep their promises, just to tie you in and roll down. They do not care if you get rejected and that they may affect future applications. They are blind to you without credit applications that users in the remote possibility that it may go through. In short, they will not tell you the truth about your true position in today's difficult market, and gradually the truth dawns on you, but then theDamage to the credibility you may have done.
A good broker will be registered and Supervisor can perform a credit search before making a request of the creditor on your behalf. A basic research will not affect your credit record and evaluate your chances of being accepted by a particular donor, as the broker in a unique position to know, and what are their specific criteria are present. The broker will determine whether the criteria of maximizing the possibilities of adaptationAcceptance for the first time. If something in your credit record that donors may have a challenge, the broker is this, and if he says to ask that he will sponsor a note of explanation, which add greatly increases the chances of acceptance. If you feel, not the results of the criteria of "first donors' (and since the criteria were raised significantly because of the credit crisis more than 66% of candidates do not meet the criteria), the broker must not seek toa question, but you should say what they do not want to hear! "I think we should have a sub-question for you, because of 'xyz'." Of course, many customers are ignorant refuse this advice, as the vehicle of his choice a few pounds more a month can be an initial funding of the costs sub and so insist on the primary question to be necessarily rejected. Do you think you want the agents that you accept so that I can give you the best advice that make this possible. A goodAgents know their market. He gets paid only if you can, you get what you want, so you do not work against him in your best interest.
Typically at this stage, a customer can remember another ad for the same car that is cheaper than it was now proposed by the broker, but if you "jump" now the probability that you navigate your vehicle (at any cost) is reduced each loan application from a broker sub-standard. By conducting a credit card you are looking at the very beginning, theAgents do a favor that will not let you submit a grant application that he knows will fail, and ultimately, the ability to influence your new vehicle safely. This will require funding in the current difficult market conditions seen over the funders that do not hit everything with you to do business. There are a lot more to make their services and so few resources for all.
Let me introduce the position of the organization of financing for a moment:
She and a group of friendseveryone has to borrow money, but there is very limited. Your friends are more or less divided into two groups, those who perform the split is very low-risk candidates (the first lender) and those that will play a bit 'a greater risk to further cut of 3% per year. (Banks subprime - to pretend to be one of those banks), a central database which recorded where all applications for funding and the outcome of these applications along with all the practices for payment of this financial year similar back . Youcan access all these data, but you do not need, unless you get an application.
A request was received from one of your "first" Connecting a broker to rent a car for a candidate, we call him "Joe." Under the Data Protection Act is not known at this time because the application is not made for you. The car will cost £ 10,000 to buy Joe from the dealer. The lender needs to know what kind of risk, so Joe looked at his credit record. He believes thatrecord, despite a score of good and sound basis of credit, there were one or two payments late to save a couple of days in the last 12 months have been a map, and he decides he does not want to give this client, because the other candidate has the record does not allow you to keep Joe.
The broker shall report to Joe and tells him that the funding was first rejected by funders and recommends an application for a sub main funder. Joe refuses to accept the advice because he does not wantpay the additional monthly amount and insisted on a different application to another main donors. This is again rejected for the same reasons. Joe saw another ad from another agency and decides to broker and start again (of course he is not in accordance with the broker said it has been rejected twice already) And Joe repeated the same mistakes. Joe finally agrees to pay the extra 25 pounds to get to his vehicle and we are asked to subprime lenders.
You, as thesubprime lenders to get broker application of Joe's with another customer, Bill, for which a similar application. Do you have enough money this month to give up one of them. What? You can see the two credit record, both are similar, both have a couple of late payments, you have missed mortgage payment before 8 months of this law, but was seen later "satisfied" and a note accompanying the application and its recent good credit history. Joe'sApplication, however, shows four rejections of finance very traditional. I do not know whether the refusal of lenders primary or sub prime, or what will be ok for yourself, just know that 4 of his colleagues do not consider him a good risk, despite his credit score. After all, maybe something is happening in the recent history of Joe is doubtful. Why take the risk, or waste time looking for reasons to justify the claim by Joe, when Bill has already met all the criteria?
Bill agofinancing and his car. If only Joe had the agency for advice or did not change any brokers, looking for a deal that has never yet to have in today's highly competitive market! It would have been him in this new car. 12 months ago lenders were falling over themselves to give to Joe, now because of market changes and Joe stubborn streaks, it is difficult to get funding at all for his new car and he looks more and more often, is the worst!
This is the reality of today's market, even for thiswith good credit.
MOVING the goalposts: In the past lenders on a mortgage with a score at the upper end of the rating "poor" credit and financing, have given the example of auto leasing when they have a "good" was standing. In today's "credit crunch" market these same people have a rating of "good" and "excellent" or would be exactly the same consideration. Many of those who flew through the funding of 6 months for the leasing of vehicles, it is timeSponsors of the Prime Minister rejected. As a result, many people feel offended and insulted when they said they were refused loans for first "when they know that their rating is" good. " The problem is that the property is no longer acceptable to a lender that specializes in market "firsts." All is not lost though! There are a few subprime lenders who provide the funds to get the vehicle for business or pleasure, your credit history is pretty clear, andAre you ready for a little extra per month in repayments and pay .... Take a good guide from your broker.
As a result of 5, they would consider funding the funding has passed away 12 months ago, only 2 of them today. The rest must go to the sub-prime lenders and are only lending to those who had a "first" in the past 12 months ago. He is synonymous with a mark of passing the exam is 65% one day and then the minimum score to 85% of the nextTag! Their abilities have not changed, but the bar has been raised the same, not much more you can now reach the pass.
To understand things better, here are some facts and explanations, such as changes in the market borrowing of money, are part of us with the first scoring good, very good and also be of interest in installments.
8 months ago 60% of those who have passed applied for the verification of financial solvency of the vehicle with a lender first. Today, only 20% of those with pass credit checksame main donors.
12 months ago, there were more than 300 mortgage products in the United Kingdom are available to a home buyer today, that amount was reduced to about 90. The offers are not as good value and the corporation that has little or no competition, so that they give to those who lay down very strict criteria and higher interest rates.
A typical loan is 12 months for 95% of property value. This is called "Loan to Value or LTV shortly. Today, the LTVtypically only 75% and 80%. This means that even if property prices fall by 4% (as in the last 9 months in most areas of England, but much more in Ireland, Scotland and Wales, the average price drop brings the United Kingdom as a whole ' 8%.) the lender faces almost no burden, because the property would fall to 20% or more, before becoming a concern.
Lenders profits only when borrowing money. Over the last six months, banks have provided loans to 33%less money than it was for the same period last year. not-for-loans for things like leasing a car, etc., the second huge 66% and the financing but they are all under pressure to make profits for their shareholders. How can they achieve this? A three-pronged attack!
1) No risk. They reject 60% + of which are already given to the financing and only those with the cleanest record Pick.
2) reduction of the loan. This means that the higherfront deposits or payments are required. As only those able to respond with the highest credit, this tactic goes hand in hand with tactics 1 and also helps reduce the risk.
3) Making more profit from each individual case funding. Mortgage fees increased over the past 6 months between 400% and 600% and we all know what happens to interest rates seen. Before the credit crisis, only those with less than good "credit (subprime borrowers) would have their loans paidSo, now also "the first borrowers" are treated in this way and the reason is simply because the lenders try to preserve profits, while only a loan from a fraction of what they did 12 months ago.
Banking is global. The largest banks control the finances of the Worlds'. Banks are focused on three major countries, Britain, China and the United States. If you make an error of assessment in a country suffers, everyone.
There are three types of loans (or, depending on which side of thethe fence you are)
1) Saved - Here is the full loan secured against a real money, convertible assets such as property. If you default the lender following the seizure of his money and sell your goods. A mortgage is a typical example, but you can borrow to buy the machines to a machine for example, or more for business and the creditor can not insist on the property to ensure the loan. Property (real estate) is the king! Even in today's market socalled "house prices falling" Lenders prefer bricks and mortar or land to anyone else. Why? In fact, despite the last few months, where he lost slightly overvalued real estate value, the value of "core" of the property is solid and secure. History has shown that the increase in the real estate market and appreciates the long-term (7 years and over). It 's like "safe as houses."
2) unsecured and ankle - This is where the loan is made for a particular purpose, the goods not forappreciate over time, but to depreciate in value in use. A vehicle, for example. The item in question to you is personal, but as the "title" is one of the lenders, such as your home mortgage. If something goes wrong you should return the product, create value and sell them some of their investments. But what about the depreciation you ask? How do I pay? This is included in your monthly payments into one of two ways.
Consider a vehicleExample;
a) you can choose to purchase any form of financing. It would require a deposit (often 20% or more) and the rest would be the car carrier directly to the creditor under a contract you sign to be paid. Under the agreement, the lender is the "Defender" of the vehicle until the last payment is made, even though the vehicle is registered in your name. If you do not meet their monthly obligations you lose your car and not the "justice" you can have inShape of each deposit was set to ensure that the first deal.
b) By far the most cost effective (and efficient tax and cash flow) is on your car lease. This requires a very small deposit (often equal to only 3 to 6 months normal payments) and a monthly payment of DD, that the depreciation of the vehicle extending over a period of hold it (usually 2yrs to 3 years) a profit margin to select the creditors. Leasing is the fastest way to get a new growthVehicle. The advantages are a better tax efficiency. Top vehicle discounts negotiated by their broker. No anger or dealing with suppliers of car dealerships. Care free-moving vehicle, which is usually the automatic road funds approved by the donors so that the vehicle never goes out of control and will not even have to renew the paperwork. And huge advantages for your cash flow by not using its capital to large deposits of HP now offers etc. Leaving your money tofree to spend elsewhere. At the end of the rental period the vehicle is collected and you do not have to worry about or try to sell advertising for them or the price for you before you could get get replaced the next new vehicle. It is' peace of mind motoring for individuals, small businesses and fleet users are turning in increasing the number
3) Unsecured - usually credit cards and debit cards. This money will be paid by default to "high risk" as a means of recovering the loanmay not be possible. Off to a very high tariffs. Credit card providers will attract transfers with 0% and similar for a fixed period, knowing that over 95% of respondents said that the provisions are not to adhere to pay off their debts, "said maturity loan that pays contributes to higher rates of interest in usually about 16% to 25% per annum of the lender makes their profit - and then some! Interest rates are high, because the "good" taxpayers must pay for the debtor!
SOWhat is the monthly amount for the work vehicle leasing?
The monthly amount you will be asked to pay for your car is made largely of four things.
1) The total amount of depreciation of the vehicle, the mileage and time is leased, divided by the number of months. reduce the various makes and models at different speeds. So in simple words, if your car costs £ 10,000 and at the end of a period of say 36 months and has completed 30,000 miles worth £ 5,500 then you will beexperienced a loss of £ 4,500 in value (depreciation) / 36 = € 125 hours, then the possibility for the intermediate groups have good links with the main car dealer is important to know how to deal with the lowest price. When a cart selling price is 12,000 € and can say a price of £ 10,000 (depending on the level of business processes, the broker places) then he has clearly infected £ 2,000 depreciation negotiate, you have to pay otherwise.
2)Broker-payments for his work in salts of the customer, the car dealer and sponsors together, is built into the price. Usually about 5 to £ 15 per month
3) The profits of the carrier is not in the form of interest or return on investment (ROI). Interest rates usually offer slightly better interest rates and therefore slightly lower monthly payments. In addition, usually require only three months of filing. Rate sub-prime, it offers an interest rate slightly higher to reflectthe "added risk" to deposit and usually up to 6 months. As an indication that the difference between a "Top Deal" and a "sub prime" between £ 5 and £ 25 are Clock
Deposit 4) in attack. This is usually equal to 3 months, payments for the first and takes up to 6 months for the sub-prime and includes the first monthly payment.
Therefore, the formula is: Depreciation (spread over the period of the lease) + Brokers Commission (charged to the lender) + interest on the cost of the vehicle (spread over the leasePeriod) is equal to your regular monthly payment. + Before payment of the deposit and first month. All this is carried by the broker and a proposal for you and for donors.
WILL MY BUSINESS survive the credit crisis?
This depends largely on how much you can plan and act now to implement these projects, instead of reacting too late. What is this latest round of "economic problems" required to unleash, is a long process "compensation" for companies that do notVision, planning, and no idea where they are going. In fact, it should be clear that for the weak, the ignorant and the Cowboys! This is ultimately for the benefit of those who planned, and have taken steps that will ultimately survive. Those who are on the other side will be stronger, better equipped and with a far less lucrative competition. So what advice should be considered?
Work out realistically what the industry can be expected to win in the next 12 months, 24Months and 36 months respectively. That the flow of cash or capital they need to reach you? Where is this money come from, or capital? What used to finance the costs and how do I factor that cost into my product / service? Recognizing the banks and lenders have to accept that and make up to 30% less business in the coming years so that they have made plans to earn nearly as much benefit from the remaining 70% of customers in the 12 months was much more customer . CanThey needed a plan similar action? Remember, unless your business is one that your customers can not do without, then a price increase must be accompanied by an increase in "customer value", you think of ways to provide added value to the customer, " the service will cost you just a little 'organization and creativity.
If the vehicles for your business, you must be to resolve these costs and reduce capital expenditures, the location of the best way to do this to run Leaseand keep things have capital. Get rid of old cars that cost a fortune hidden maintenance, breakdowns, fuel efficiency, safety, etc. All these "unknown expenses" and could leave the industry in one fell swoop! I know a company that has spent more than £ 17,700 for unplanned repairs and maintenance on three vehicles in one year old, replaced it with 3 new lease vehicles, which cost him only $ 1,100 per month for all 3 - the costs known. The fact is that youBudget Plan and the cost is known, but the costs may be unknown to the murderess.
Plan your tax affairs in advance with your tax advisor.
How to reduce the overall costs to maintain profits? The effectiveness of all that is spent on advertising and promotion, if not fall to be convenient to leave. The attention to detail. Duncan Bannatyne (Dragons Den fame) once ordered his staff not to staples because they were unnecessary because they receive more than those sent ..... Cautionfor details!
A market crisis is not the time to a price war, but to increase the value, in order to raise prices, do not drop, broken competition or you can die the death of thousands of discounts before they know are dead!
To summarize:
If no problem finance, loans or for transit traffic in the past, then 3 to 5 hours will not be able to obtain funds from a "first providers" you would pass as a stab at primary applicationthen get realistic about what you have to subprime.
What does the future hold? It is now July 2008 and I see a slight "softening" of the criteria of the lender in October 2008, just because they are not able to keep the profits when they borrow money, and this means that the lower target a little '! House prices will stabilize at this time. The government can still pull the strings behind the scenes to restore confidence between banks to transfer money among themselves to buildagain and will help free up more money for the financial sector.
The situation is, however, set a problem with the minimum of economic growth until late 2010. It 'possible that we met officially a "recession." (Officially, three consecutive quarters of negative growth in net worth to the economy) even though many may feel that we are already in a recession, we take to heart that is facing our financial and economic situation, only 30% strong as that of the USA. Funding iscontinue to be difficult to find and expensive, as we have already been used for decades.
We are not in a recession yet! In reality, the economy still has a low annual growth rate, despite the odd quarter of negative growth. Although the means to make every effort to speak with us in a recession, (apparently death and destruction on sale!) The economy remains fairly strong with a good 'middle' to 'long' perspectives. There is one condition, however, if access to finance (particularly for developing countriesCompanies and individuals) dried over who "buys" the two biggest purchases of their lives, their property and their vehicle / s plants, then the economy could be forced to deeper problems exist for a healthy economy, money must be free. circulates
But we are far from this problem. In the meantime, we're just going to have to go through tires more than ever to get used to finance and pay more for them. Get used to it, is for the near future!Funding has been cheap if not forever then for a long time '!
Why is there a credit crunch?
During the last decade, the credit is very easy to get. Employment was high, high wages, the economy was booming and everything seemed rosy. Mortgage and other financing methods were available to almost everyone who had to give an impulse.
The big banks are global players and the basis for the provision of credit. If a bank required more resources than access tothey would simply cover, borrowing from another bank. Banks lend freely to each other in the United Kingdom to a fixed percentage of those known as the LIBOR (London Inter-Bank Offered Rate). London's importance because as world financial center, LIBOR applies not only to the pound, but also for the major currencies as the U.S. dollar, Swiss franc, Japanese yen and Canadian dollar.
The Haunted House actually began around 2006, when the banks realized that more and more mortgagesForeclosures have been more and more were held down. But do not worry, these loans were secured by large property, unless the loan because in many cases exceeded the market value of the property and the banks began to experience negative equity. Normally you want to make new loans not loan money to each other short term loans with banks to exchange the LIBOR. No one seemed to mind. All triggeredlong.
We and other countries will be affected by this pull, but it is primarily to regulate, in essence, a financial problem, because nobody thought the United States and to give reasonable there, we all have to suffer! Thanks President Bush! (The irony is the way George, if you read this!)
The credit crunch is the fault of America?
