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Response to Saved in the nick of time

from Lexie (lexie.fabriane@ntlworld.com)
Dave, whilst i know this message come too late for you, it is really intended for all who read your success story and in particular those who may wish to follow your steps.

Whilst I appreciate that you really wish to resolve mortgage arrears problems, it is not always the best to go to a sub prime/non status lender. There are many companies out there who will lend to you, and often pray on vulnerable borrowers in unfortunate circumstances. Brokers may charge you huge fees for setting up the mortgage or secured loan – these are the fees you know about and pay because they are doing you a service by finding you the best deal.

Some brokers also take payments and commissions from the lender which are not disclosed to you. If the broker receives payment from the lender over £250 they are required to tell you. There are those that do not.

What you must ask yourself is this – how can they get me the best deal when their income is based upon or supplemented by an undisclosed payment from the lender?

You must ask what benefit the broker has by recommending this product to you. Insurances are also pushed and many fail to be of any benefit when called upon, or would never cover you anyway.

If you do decide to go this way take a look at the interest rate – is it the best you can get?

Take a look at the small print – especially any extra charges which occur if you are late or miss a payment. They will also attract interest throughout the term of the loan.

Look out for deferred legal costs – these attract interest throughout the loan and can mean that you are left with many thousands of pounds to pay at the point where you think you have reached the end of the term.

Do not make a panic decision to enter into a sub prime/ non status mortgage or secured loan.

Ask questions – lots of them. Seek legal advice BEFORE you sign anything.

(posted 7506 days ago)

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