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.

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