Mortgage Updates

Beacon Mortgage Solutions in the UK is very worried about what they call an “unscrupulous” trend that is going on in the real estate business. Some mortgage brokers are purposely selling homes to people who are what they call high risk due to the fact that they have bad credit or may even have declared bankruptcy. This allows the brokers to charge high interest rates and unfortunately the home owners could end up losing everything because they can no longer keep up with their mortgage payments.

Home-buyers with poor credit ratings are known as “sub-prime borrowers”, a pigeon-hole that allows lenders to charge sky-high interest rates. In the UK, the sub-prime market is reckoned to be worth £30 billion a year.

With stakes like that, more and more financial institutions are getting in on the act, and asking brokers - their prime route into the market - to sell their wares.