12
Dec
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."
