Consumers warned over mortgage advice fees

People in the UK looking for mortgages should look out for large fees for mortgage advice from subprime lenders, according to John Charcol.

The mortgage adviser has told people to be on the lookout for lenders which will charge significant sums in return for personal financial advice.

Katie Tucker from John Charcol, said: "Borrowers who have credit problems are the most vulnerable; they tend to turn to one of the many subprime brokers available. However, there is a vast array of different fees charged by brokers, and borrowers who feel hopeless can often pay a great deal of money unnecessarily."

She added that research by Charcol has revealed that some brokers charge "as much as ten per cent for their advice to sub-prime borrowers".

According to the company, the issue is more important at the start of the year as people have overspent at Christmas and want to remortgage

John Charcol was established in 1974 and offers clients advice on their mortgages.

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