12 Dec

Charity slams mortgage brokers in report

Charity slams mortgage brokers in report

Mortgage brokers have come in for heavy criticism in a new report from the Citizens Advice Bureau (CAB).

According to the CAB's Set Up To Fail study, thousands of homeowners have been encouraged to buy properties they are unable to afford by unscrupulous brokers.

The brokers, it is claimed, actively encouraged borrowers to falsify their income and fail to disclose relevant information.

This has contributed to an 11 per cent increase in cases of consumers struggling with home loans dealt with by the CAB during 2006/07.
David Harker, chief executive of the CAB, also criticised sub-prime lenders for their conduct.

He said: "The cavalier behaviour of some brokers and sub-prime is seriously undermining home ownership and hitting the most vulnerable borrowers hardest."

"Our research suggests that many aspiring home owners have been mis-sold unsuitable and costly home loans that are doomed to fail from the start."

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.