There have been an increasing number of methods for individuals to find the loan they need, whether it be an unsecured loan for car purchase, perhaps, or a secured loan for debt consolidation, or a home owner loan or mortgage.

Potential borrowers have the choice of either going directly to the lender for their loan, or via the internet through one of the many price comparison websites, or by using the services of a loan broker of financial adviser, who is usually able to offer face to face and specific advice to potential borrowers and also source the best deal on the market for the individual’s particular needs.

Over the course of the past couple of years, since the start of the credit crunch and banking crisis, many banks and building societies have been shutting out financial intermediaries and loan brokers, by only offering their best loan deals directly to customers. But as lenders are starting to ease their lending criteria and offer more competitive products, it seems than some of the best deals on the market are now only available through financial advisers and loan brokers.

New research from Moneyfacts.co.uk has revealed that the average 2 year fixed rate home owner loan, form a high street bank of building society is 4.86 per cent, compared with just 4.79 per cent by using a broker. Similarly a five year fixed loan average cost is 6.05 per cent in branch, compared with 5.97 per cent through a broker.

Darren Cook at Moneyfacts.co.uk said “Like many others, mortgage brokers have probable felt one of the biggest impacts of the banking crisis and they have also had to deal with the frustration of dual pricing. At the height of the crisis, many mortgage providers preferred to offer the better deals to their direct customers, which enabled them to turn off the taps to new lending very quickly. Brokers have and  always will form an integral part of a healthy mortgage market, so we hope that dual pricing fades away soon and we return to a level playing field as quickly as possible.”

It is that time of year once again, where thousands of students eagerly await their A level exam results and start to make the final preparations for the next stage of their education, going to University.

One of the major hurdles facing students is that of obtaining sufficient funding to see them through what is usually a three year course. Although many students have to get themselves a part time job to help fund their studies, the vast majority will have to take out a student loan in order to help them pay their way.

But with the Government announcing earlier this year that the level of student loans and grants will remain at the same level for the next academic year, whilst the cost of University fees and accommodation has increased, it seems likely that many students will struggle even more than usual with their finances and many will be forced to take out additional unsecured loans or use credit cards and overdrafts.

It is expected that the average student will have student loans and other debts of at least £20,000 by the time they graduate and many expect that it will take them somewhere in the region of ten years to repay their loans once they start working, thereby reducing their ability to obtain a homeowner loan, or other credit.

It seems that a University education is once again becoming the privilege of those families who can afford it and more and more students are becoming reliant on additional financial support from their parents, or even grandparents. But with the effects of the credit crunch and recent recession having an impact on most people’s financial situation, many potential students are now being denied the opportunity of a University education, even if they are prepared to take on the daunting prospect of huge student loan debts to get them through it.

With the loan industry as a whole shrinking over the course of the past couple of years or so and several loan companies and brokers going out of business due to the effects of the credit crunch, it is quite a refreshing change to see a new service being launched for the loan industry.

The insurance giant Legal and General has announced that it is to launch a loan service for financial advisers and loan brokers to be able to source both unsecured loans and secured loans for their clients from the whole of the market.

The service will be available to those intermediaries who are directly authorised by the Financial Services Authority (FSA) and will be run via Moneio and the L&G website through their “Lending Wizard”. The service is designed to allow advisers to search for suitable loans for their clients from the whole of the market and should be able to suit all customer needs, requirements and risk profiles.

As the system is online, it will allow loan customers to see exactly what APR (Annual Percentage Rate) they will be paying before they apply and also give them an instant decision in principle as to whether or not they have been accepted for the loan.

Ben Thompson of Legal and General said “With personal loans becoming harder to come by, some customers are finding that the advertised APR rates aren’t always the rates offered on application. People are becoming disillusioned and turning to financial advisers for help. Through our service, advisers will be able to search and compare actual loan rates before an application is made, saving their customers’ time and protecting their credit rating. Plus, it’s a new revenue stream for advisers and we are offering some of the best commission rates in the broker market.”

It has been claimed that irresponsible lending practices in the past from banks and other personal loan companies has led to an increased level of debt problems amongst consumers.

The Citizens Advice Bureau (CAB) has blamed lending institutions for offering unsecured loans and secured loans to individuals without carrying out adequate checks on their personal circumstances to ensure that they will be able to manage their monthly loan repayments on an ongoing basis. Since the beginning of the credit crunch, an increasing number of people are either losing their jobs, or seeing a reduction in their income through a drop in bonuses and overtime, leading to a severe build up of arrears on their personal loans.

CAB has seen a dramatic increase in the number of individuals contacting them for debt advice and how to manage their loan repayments. A spokesperson for CAB said “People have been able to take out loans, mortgages and credit cards, sometimes in circumstances where they have been persuaded to take them out and the lender should have been checking much more carefully.”

The charity has seen such an increase in the number of debt related enquiries, it has been forced to extend opening hours and employ additional staff to deal with the numbers. The average consumer seeking advice from CAB on their personal loans, owes around £17,000 and somewhere in the region of 10 per cent of borrowers have at least ten different sources of credit, through things such as personal loans, credit cards, store cards and overdrafts.

According to the charity, the average level of loan debt in the UK has increased by around two thirds since 2001, and many borrowers who seek advice have no realistic way of ever paying off their loan debts within their lifetime at affordable rates.

Over the course of the past few months, you may have regularly read news pieces on the proposed changes to Payment Protection Insurance (PPI) following a report from the Competition Commission (CC) and investigation by the Office of Fair Trading (OFT) and Financial Services Authority (FSA), due to the high number of complaints which have been received by the organisations from consumers with regard to the mis selling of these products.

PPI is often sold by banks, building societies and other lending institutions alongside a new personal loan application, at the same time as the loan and is intended to protect the monthly repayments in the event of the borrower suffering accident, sickness or unemployment.

The CC has proposed that there should be a waiting period of 14 days between the loan application and sale of the PPI policy and that single premium PPI should be banned.

In line with theses recommendations, five high street banks have now said that they are to stop selling PPI on a single premium basis in connection with unsecured loans to customers, from, the end of this month. As from February, these lenders will only be able to recommend regular premium PPI products alongside their personal loan products.

The FSA has congratulated the banks in question on the move, saying that it is a big step in the right direction towards improving the sale of PPI policies and that other loan providers should now take note and make similar changes to their product range and sales processes.

Jon Pain of the FSA said “We are pleased these firms have stopped selling single premium policies and would expect other firms to notice these developments and review their own positions.

A PPI product can be helpful for customers wanting protection on a specific credit agreement, as long as the policy is sold appropriately. Consumers can visit our website, moneymadeclear, to get information on their protection choices and use our tables to compare PPI policies.”