Warning issued over subprime mortgage advisers

Indebted British consumers have been warned that they could be obliged to pay unnecessary and substantial fees to subprime mortgage advisers.

Mortgage advisory firm John Charcol insists that there are significant discrepancies in the amount of money charged by experts for providing homeowners with information about remortgaging.

Furthermore, the company claims that the issue is particularly important in January, because this is a popular month for people struggling with debt management difficulties to consider altering their mortgage arrangements.

“Borrowers who have credit problems are the most vulnerable; they tend to turn to one of the many subprime brokers available, to consolidate the debt into one loan, second mortgage or remortgage,” said Katie Tucker from John Charcol.

“However, there is a vast array of different fees charged by brokers and borrowers who feel hopeless can often pay a great deal of money unnecessarily.”

According to a recent study by uSwitch.com, almost 4.8 million British consumers regularly spend more money than they earn on a monthly basis.