Free advice for problem borrowers

Published 01st Jun 2007

Borrowers with a poor credit history are being given the chance to get tailored mortgage advice for free.

In a market that is awash with brokers who charge exorbitant fees, Charcol.co.uk is determined to break what it sees as the vicious circle of debt.

Borrowers spend so much on organising a non-standard loan that they are never offered the chance to break the cycle.

Charcol.co.uk estimates that the annual lending in this sector is around £30 billion, or approximately 8 per cent of the market, and this is a figure that is growing with the increasing rate environment the economy is currently in.
Repossessions are already predicted to rise to as high as 55,000 in two-years time and unsurprisingly those with poor credit history account for 70 per cent of the rise.

Peter Barrett, managing director at Charcol.co.uk, said: “The amount of personal debt in the UK continues to grow, particularly in a rising interest rate environment and for financially vulnerable borrowers to be charged outrageous fees for consolidating their debt is simply not right.

“Of course, there is a certain stigma attached to borrowers who have financial difficulties, but these can have occurred for any number of reasons. For example, one of the most common causes is the end of a relationship and one partner simply not being able to cope with the financial burden that was previously shared.”
By Jennifer Lowe

Source: ' What Mortgage '

View All Latest Articles