Fees Rising affecting Sub prime borrowers

29/01/2007

The standard rate has increased from 6.33 per cent (July 2006) to 6.57 per cent today. Independent comparison website says the Bank of England’s base rate has also increased by 0.75 per cent.

1 in 5 mortgage firms are deciding to rise the total amount of sub prime mortgages they offer in the next 12 months ahead, however MoneyExpert.com feels that many customers need to take in consideration high fees as a part of sub prime mortgages.

“Many people rely on sub prime mortgages, from the self-employed to people who have very poor credit ratings. Although it’s good news that many lenders haven’t passed on the base rate rises on sub prime mortgages, customers have to be wary on fees.” Said Sean Gardner, Moneyexpert.com, Chief Executive.

“If you don’t have a perfect credit rating and you are considering a sub prime mortgage, make sure you search the market high and low as there are thousands of products to choose from. High arrangement fees can skew the effective rate of interest you’ll get on your mortgage, so don’t pay the price for poor research.”

Mortgage advisors are telling people who are thinking of applying for a sub prime mortgage that their application is not 100% guaranteed to be accepted. MoneyExpert feels that applicants will have to face higher interest rates.

Free Mortgage Enquiry