How Modern Finance Markets Effect The UK Loan Prices

As the growing financial impact of the 2008 crash settles down, and the new problems facing the UK and Africa from an economic perspective come into play, we are going to go ahead and look at how the modern markets are dealing with the global pressures, and how loan prices are changing as a result for consumers.

Market Movements in 2018

There are various movements in the markets going on, with a cooling off of the demand for Italian stocks (see here) and a genuine move to a more conservative approach to investing which has led companies in recent years to struggle for extra financing for future projects and research and development.

Brexit Impacts Upon Share and Investment Prices

Brexit is bad for consumers

Brexit is bad for consumers

IT is no joke that the results of the EU referendum sent shock waves through the modern financial markets, putting the United Kingdom at a massive disadvantage worldwide.

The majority of firms making money abroad actually benefited by the drop in share price as their costs dropped significantly, meaning that they made more money. However for your average consumer it was not quite the case.

What about personal loan prices?

There has been a steady trend towards more expensive personal loans since the 2008 financial crisis, which is only just starting to subside. This is because the main part of the financial crisis was around bad debt, which is where people were lent money that they would never have been able to pay back.

How are guarantor loans affected?

The guarantor loan market wasn’t really affected by this too much, because by using a guarantor who had some form of security and a good credit rating, the lenders were able to offset the risk of the person taking out the loan to make it a better investment for them.

How are payday loans affected?

Payday loans were also not affected too much (especially when comparing the best UK providers), mainly because they are offered over such a small period of time that the interest rates are usually high enough. Also the market was put under a cap on interest rates after the scandal with people getting into too much debt.

How are wedding loans affected?

Wedding loans are a type of personal loan, and were therefore quite heavily affected by it. If you didn’t have a good credit rating, you were certainly not going to get a very good interest rate on a wedding loan, which could harm your chances of paying for your dream day.

Resources

Here are some more financial resources to get deeper into the issue:

https://data.gov.uk/search?page=2
https://en.wikipedia.org/wiki/Syndicated_loan
https://www.apply-budgeting-loan.service.gov.uk/
https://www.economy-ni.gov.uk/
https://www.ft.com/content/6814223c-faaf-11e7-9b32-d7d59aace167
https://www.gov.uk/tax-sell-shares
https://www.ons.gov.uk/economy