Charges blight sub-prime mortgage applicants
Mortgage broker, John Charcol, is warning mortgage borrowers with a less than perfect credit history that some brokers charge as much as 10% for advice to sub-prime customer.
In addition, borrowers can be unaware that credit histories can be repaired, by making mortgage and other loan payments in full and on time for two years, after which a mainstream lender can be approached.
Under these circumstances, brokers that deal with “sub-prime” and “prime” lenders are to be preferred as they can sometimes place a mortgage with a mainstream lender, when a specialist sub-prime broker will be unable to do this.
Katie Tucker of John Charcol comments: “Borrowers who have credit problems are the most vulnerable; they tend to turn to one of the many sub-prime brokers available, to consolidate the debt into one loan, second mortgage or remortgage. However, there is a vast array of different fees charged by brokers, and borrowers who feel hopeless can often pay a great deal of money unnecessarily.”
In the short period in which the term “sub-prime” has become commonplace, Briton’s debtors have faced a deepening of their woes.
According to a recent survey by Uswitch, the price comparison website, one in 10 adults, are spending more than they earn on a monthly basis.
The research, which questioned 4,200 adults across the UK, found that when all normal monthly expenditure was accounted for, the average consumer has £157 remaining.