bright light

The credit crisis for those with adverse credit loans is still in full swing and homeowners across the UK are struggling to pay their mortgages. The past month brought even more rate hikes for adverse credit loans and many wonder when it will stop. For those seeking to refinance their adverse credit loans, the news has not been much better.

Francis Ghiloni at mform.co.uk, stated: “Borrowers can be forgiven for thinking that there should be a fixed cost for a valuation which is standard across the industry. It’s the same house after all. However, lenders are being squeezed in the credit crunch and are using fees - and increasingly a variety of fees - to maintain margins. Some charge arrangement fees and while others charge valuation fees and valuation administration fees, others charge no fees.”

Darren Cook of Moneyfacts added, “The curse of Friday 13th bought more pain for borrowers as swap rates reached a new high of 6.49 percent. With lenders having to pay such a huge price to secure funds and a lag time of a few weeks before this cost is passed on to mortgage customers, the situation is likely to get worse before it gets better.”

Related reading: Adverse Credit Loan