Chancellor Alistair Darling has called for an end to what he has described as “rip-off” fees being charged by mortgage providers in the UK.
Speaking to the Liverpool Daily Post recently, Mr Darling expressed concern that homeowners who are already facing debt management difficulties are being obliged to pay fees they cannot afford.
He went on to suggest that in some cases mortgage lenders were effectively taking advantage of their customers who are looking to secure a fair deal when they come to remortgage.
The chancellor said: “We have met with the Council of Mortgage Lenders to try to reach an agreement to ensure that people are treated fairly, but if that isn’t happening, I will ask the Financial Services Authority to pursue the matter.”
A report recently from Equifax on behalf of ITV claimed that an increasing number of Britons using credit card debt to meet their mortgage repayment demands.
By Giles Stevenson