Lending and borrowing money is one of the most important features of a healthy economic climate, and a healthy economic climate is what is lacking in the UK at present.A vast percentage of our citizens genuinely believe that banks, building societies and other lending institutions simply have no funds available, and whatever funds they do have available, they are only willing to grant in the form of loans, mortgages and remortgages to those and such as those.
People, both private individuals and those in business, who could be helped by borrowing money at this moment in time, are making no application for a loan of any kind as they truly think that there is nothing out there for them. The newspapers used to be full of adverts for loans, remortgages and mortgages, as well as offers of commercial loans. This showed people that finance was available and encouraged them to make enquiries. The television frequently aired adverts for loan brokers and lenders, mortgage brokers and mortgage lenders. Advertisements for such companies as Ocean Finance, Norton Finance, Loans.co.uk, etc were as common almost as watching The Simpsons.
These adverts are rarely seen, with even the above mentioned loans.co.uk, who were one of the biggest UK loan brokers and who were latterly owned by the mighty MBNA ceasing to trade. These advertisements really served to advise the British public that loans and remortgages, etc. were available , and worth applying for, and apply they did, in there droves.
However all that has altered, and advertisements both on the television and the press are to say the least thin on the ground.
Therefore it was an excellent sight, and in the middle of all this financial gloom a glorious sight , to see the advertisements issued in the press by RBS encouraging businesses to apply to them for funds to either tide them over the recession, as it were, or even to ask for funds to expand their business if this was appropriate at present. The advertisement stated that the RBS had helped the UK’s oldest independent brewery to open sixteen additional outlets. Tremendously heart lifting news in the current economic climate.
Many businesses could do with a bit of help at present in order to come out of the recession still trading.
Other companies might see fit to expand their operations, having been helped rather than hindered by the state of the economy.
Many households have economized by buying more frozen food than fresh and there has accordingly been a rise in the profits of the frozen food manufacturers and the stores who specialize in providing frozen food.
Ready meals have also increased in popularity, especially foreign food such as Italian ready meals, as well as Chinese and Indian ready meals. Households are buying these as a treat instead of going to Italian, Chinese and Indian sit in restaurants, as they offer a much cheaper alternative.
These types of firms could well do with considering expanding, and for this the RBS pledge to help the UK indusrty is a pleasing one.
RBS has also funds available to provide 110,000 mortgages to first time buyers at 90% LTV. For almost the last two years it has been virtually impossible for first time buyers to get on to the property ladder, as the maximum loan to value has been 75%, and not many people have a 25% deposit available to put down on their first home. This could go a long way to take the UK property market out of the doldrums, and help kick start the economy.