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Borrowers confused by mortgage turmoil

Tuesday, 29 July 2008 12:00 AM

Borrowers in the UK looking for a new mortgage deal have been left baffled by the constant tweaks and changes made by the lenders during the credit crunch.

As a result, they are making mistake, and are not selecting the best deals available to them, according to My Mortgage Direct (MMD).

"Since the credit crunch took hold the major lenders have made endless tweaks to their range of mortgage products - rates have gone up and down, whole ranges have been withdrawn and new ones launched," said MMD director, Cath Hearnden.

"It is not surprising that borrowers are bewildered by this barrage of information and are worried that they might go for the wrong deal."

In response, MMD suggest it is essential to secure mortgage advice from an independent source, covering the entire market and not just selected lenders.

However, recent research from Which? has cast doubt over the efficiency of some UK mortgage brokers.

"The drubbing of mortgage advisers handed out by the recent Which? undercover survey is less than helpful in the current climate and could result in borrowers making their own decisions rather than seeking expert advice," added Ms Hearnden.

"While it is regrettable, it is not a huge surprise to discover some advisers tied to a particular lender aren't as assiduous in their questioning of clients as they might be."

The Which? research finds just four out of 50 mortgage advisors offered acceptable advice to potential mortgage borrowers.

Chris O'Toole

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