How not to be ripped off by brokers.

Talk about giving the industry a bad name. I worked for a mortgage bank till quite not long ago and I used to be startled at the costs that brokers charged their clients. I tell the customer that it is going to be troublesome but I think I'm able to help him.

There could be some "fees" but hey, at least he's going to get a mortgage and that is all he cares about isn't it? So, he must borrow £150k. If they are this late with their home payment they are often behind with the auto and have several credits cards that are maxed out. Our office got a call early one morning from a person desperate to save his home and required foreclosure help. His blemished credit made it tricky for him to even qualify for a loan, not to mention a low interest rate. This person was concerned that his folks would have no place to live. His home loan payment stayed about the same an! d he was able to repay more than $25,000 in other debt, which assuaged many hundred greenbacks in Credit card payments each month. More importantly, this person's house was saved and his folks was in a much stronger fiscal position. But when you're going thru a bad financial spell, you want an establishment which will stand by you.

Banks incline to make loans that are risk free to them. Ok I am talking about a theoretical situation but this is one that is repeated common-or-garden across the UK. In my viewpoint it isn't anything more than theft and shows scanty regard for the clients wellbeing. So, to summarize, the £150k loan now becomes £154,500 and that is before you even get to the barrister and agreement charges, not to mention the Mortgage Indemnity Premium ( MIG. Ask your broker to explain their costs and if you find anybody charging a fee of more than 1%, walk away.