Making the wrong decision could see borrowers paying significantly over the odds and missing out on suitable products or being stung by hefty fees, often levied by sub-prime mortgage brokers mortgage brokers that deal with borrowers with credit problems, says Purely Mortgages.
Purely says that a borrower with mild credit problems such as CCJs, borrowing £120,000 could pay a fee of around £4,2000 to a specialist sub-prime broker. In many cases a borrower would be forced to add these fees to the mortgage, meaning they would end up paying interest for the term of the loan.
Mark Chilton, chief executive of Purely Mortgages, said: We estimate that as many as one in five people now carry an adverse credit rating. As this market continues to grow the good news for borrowers is that lenders are being forced to offer more and more competitive deals, which with features such as free legal fees and valuation can save borrowers quite literally thousands.
Finding the best deal is only part of the story, they must consider the fees they are faced with carefully. Rolling high upfront costs in the loan for the full term of the mortgage could be a costly mistake.
Find a best-buy mortgage here
Loading ...