15 December, 2008

It has been reported that recent difficulties faced by the monetary markets have considerably undermined people's confidence in lending institutions.

According to Newcastle Building Society, one in ten people believe that their money is safest when stashed under the mattress. The financial crisis has resulted in the number of people choosing to hold their cash where they can see it nearly trebling, from four per cent to 11 per cent. In Wales and the Midlands, the proportion of those holding capital in cash is as high as 15 per cent.

Those looking for an effective way to cope with their big budget financial needs, applying for secured loans can be an ideal choice. These loans can be entailed by the borrowers by placing any of their valuable assets as collateral, against the loan amount. Seeking such loans leaves the borrowers with long repayment period and lower interest rate in affordable monthly installments.

Despite the above statistics, the monetary organization keeps that the majority of Brits would still like to see any savings they have stored collecting interest in a dedicated account, with 34 per cent selecting building societies to offer this service.

Wendy Lee, spokesperson for the firm, says: "These findings are a stark sign of the times, but they are also get worsen by the hype surrounding the financial crisis. With some attractive savings products available, you might think people are barmy to hide their cash at home. Unfortunately, some savers now planning to invest their money with a building society or bank can be a risky business, which is not the case."

Those looking to store away funds but also intending to undertake some important spending, for example renovating or buying new car, might like to consider secured loans. These loans provide huge finance to the people, so that they can meet with all their big budget financial requirements. These loans can be availed by pledging any asset as collateral of the borrower against the loan amount. Such loans carry lower interest rate and long repayment period, which are highly affordable.

Although the financial crisis has impacted on saver behavior and attitudes, the secured loans market remains in good health, according to price comparison site Moneyfacts. The company reported that while many commentators had recognized tightening criteria being used by lenders, cheap loans remained accessible to those prepared to undertake surfing loan market.