A few essential tips in order to avoid mortgage scams

A few top tips to avoid mortgage scams

12:51 07 October 2013

Mortgage payments are some of the largest debts you have in your life, and there are many scammers out there wanting to trap you. Here is how to make yourself aware.

Numerous mortgage scams and frauds have been reported in the United Kingdom in the past few years. It appears that many people were not happy about the way brokers and other lenders sold their mortgage services.

Since 2002, when the scams were on a historic high, the UK Government has shown great seriousness to get involved and has issued new legislation and regulations to ensure that mortgages are not mis-sold to clients who can't actually afford them or don't need all of the insurances they come with. However, there are still some brokers who bend the rules.

Here are some of the most important things you need to avoid when getting in line for a mortgage loan:

• You should always be cautious about high fees added to your mortgage by brokers. If you spot a high fee, try to talk to the broker and find out exactly what that fee is related to;

 

• Check for all of the insurance premiums connected to your mortgage. Many times, clients find out that they don't actually need all of those services;

 

• Always ask for your broker or mortgage lender to provide all the necessary advice you need before signing up for the mortgage – according to the law, brokers must provide all the information you need;

 

• If you suspect that you have been mis-sold a mortgage, then you can file a report online, at www.missoldmortgagesclaim.co.uk. However, reports can only be filed if you have actually been the victim of a fraud, not if you simply missed on payments or did something wrong in the process;

There are certain ways you can make sure that the mortgage you want to get is not a scam. First of all, try and see if the mortgage really fits your need, if it’s the best product for you and if you can manage to pay for it in the future.