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Secured loan market yet to recover

While there is most certainly a requirement for additional liquidity in the consumer loan and business loan sectors many people would be surprised to learn that secured loans are still very difficult to obtain where properties are involved. The bottom line is that if you asked five estate agents to value a property you would likely receive five different valuations. This is the crux of the problem in that financial companies are unable to definitively value your home or another property.

If the loan companies are unable to obtain a trusted valuation of a property then they are unable to guarantee the security of their loan and ultimately this is likely to be withdrawn from the customer. Yet again we are stuck in a "chicken and egg situation" in that does the UK banking sector increase liquidity to improve market conditions, thereby taking the chance that a further downturn could occur in the future, or wait until the market recovers naturally and then increase liquidity?

We are talking about sectors of the UK financial market which were, until the recession began, the bread-and-butter of the consumer financial sector and something which many people had access to on a regular basis. This recession will take some time to work its way through the system and ultimately more people will be pushed towards bankruptcy and more businesses will go to the wall.

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