Ray Boulger, senior technical manager at John Charcol, said: “It is no surprise that the FSA has found it necessary to clamp down hard on some brokers specialising in the impaired credit market. The FSA report makes it clear that in many cases misleading advertising was just the tip of the iceberg. The non-conforming sector is awash with dubious companies, peddling heavily over-priced mortgages, often with exorbitant fees and excessive early repayment charges, to those people who can least afford to pay them. It is also a huge concern that many people are being sold a non-conforming mortgage when they would qualify for a mainstream home loan. This highlights, more than ever, the need for consumers to seek reputable, independent advice before deciding on a mortgage.
“People who find themselves in a degree of financial difficulty need to know that they can turn to someone who will help them get out of the debt trap, not make their problems worse, as the FSA investigation has revealed happens all too often.”
