First-time buyers facing 'extortionate fees'

30-Jul-2008

A lack of property-buying knowledge is leading some first-time buyers to be charged "extortionate fees" by agents who capitalise on it, it has been suggested.

Debt experts at the Homeowners Advice Centre alluded to the complex and "archaic" processes involved in property purchases as they analysed the pitfalls for buyers.

"Conveyancers leverage homebuyers' ignorance of the process to charge extortionate fees," confirmed Al Elliott, a spokesperson for the advice portal.

"Perhaps the introduction of Key Facts Illustration, like in the mortgage industry, might make buyers realise what they are paying for and where the money goes," he continued.

Mr Elliot went on to suggest that a shortage of relevant mortgage products, rather than buying fees, is hindering many first-time buyers from getting on the ladder.

His comments come as a report addressing the difficulties facing the UK's mortgage market was published this week.

In the document, commissioned by the government and undertaken by former HBOS chief executive Sir James Crosby, it is predicted that a shortage of mortgages will persist for at least three more years.


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Mortgage market review due today CML: Mortgage lending affected by funding shortages

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