The current state of the economy means that it's more difficult than ever to get a mortgage. More and more people are turning to so-called experts to help them find a good, yet affordable, mortgage deal during this tough time.
Unfortunately, due to the increasing amount of rogue brokers, some of these people will find they are being sold mortgages which are unsuitable. In some cases, these 'experts' will be giving bad advice, tricking people into thinking they can afford a particular mortgage. In other cases, false mortgage applications are being put through by the brokers after they've claimed the fees from the unsuspecting customers.
The Financial Services Authority has launched an investigation and have so far handed out over £20.5m in fines to rogue brokers found guilty of mis-selling mortgages or engaging in other such unscrupulous practices. It seems that these brokers are part of the reason why the mortgage market has gone downhill of late; they are selling mortgages which the applicants cannot hope to sustain and this naturally has a detrimental effect on the rest of the market.
It may sound scary to anyone who is thinking of applying for a mortgage, but provided the broker is licensed with the FSA, all should be well. Alternatively, if your credit score is good, it might be worth checking with your bank as to their deals; most banks have a member of staff who is a trained and licensed mortgage advisor. If you'd prefer to deal with an independent financial adviser, ask your friends and relatives who they have used in the past; word of mouth is a good way to find a reputable broker as you can see the results of their work easily.
When applying for a
mortgage, it's best to check all the small print and look into everything thoroughly. This is especially true when applying for
overseas mortgages, and even when looking to
remortgage your home.
