Lenders inconsistent with charges says National Homebuyers

Many homeowners may find themselves in financial difficulties because they are unsure how much they will be charged for missing a mortgage payment.

[UKPRwire, Tue Feb 12 2008] Moneysupermarket has revealed that there are large inconsistencies between the charges and fees handed out by some of the UK's top lenders.

It means that many borrowers are finding themselves in financial difficulties and struggling to avoid repossession.

The most expensive lender when it comes to charges for being in arrears of three months or more is C&G, which fines borrowers 206 in addition to 94 for debt counselling.

This contrasts greatly with HSBC, which does not charge customers for missed payments.

"Many lenders are quick to agree on a mortgage, but not so eager to help financially when their customer is most in need. Charging someone 372 is equivalent to raising the annual SVR rate on a 150,000 mortgage from 7.5 per cent to 8.49 per cent," said Louise Cuming from Moneysupermarket.

"We would question if these lenders are treating customers fairly, given the inconsistency of the fees and charges

"Lenders aren't charities, but no one wins if they automatically burden customers with more fees and debt. I'm sure customers in arrears are unaware that most lenders charge for every call they make and letter they send," she added.

Fast property sale expert Julian King adds, "If the BoE reduce the interest rate, as expected, in February, I doubt very much whether this will be passed onto the consumer.

"Most banks still have a profit deficit to protect thanks to the credit crisis and new and current homeowners are unlikely to benefit from any rate cut from the Bank.

"There are thousands of Homeowners who need a quick sale and we advise them to act very quickly to avoid any possible disaster".

Mr King is a director of National Homebuyers, the UK's leading quick home sale firm, guaranteeing a fast property sale for vendors who need a quick sale. The company is also the UK leaders in providing Sell and Rent Back solutions.

Company: National Homebuyers

Contact Name: Jayne Cornford

Contact Email: jayne.cornford@nationalhomebuyers.co.uk

Contact Phone: 08709798118

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