Tighter lending restrictions are pushing people to use B lenders, such as trust companies, rather than banks.
As more people find themselves outside the criteria for a traditional mortgage, they are turning to alternative lenders, but that desperation can lead them to making choices which could see them losing their homes.
While the A lenders are competitively keeping their rates as low as possible, around the 2.99 per cent mark, B lenders’ rates are often double that or more. Some people have saddled themselves with loan repayments of a massive 16 per cent.
On top of the interest rates, other fees ramp up payments to a level that puts a very real risk of losing the home.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: