Poor credit rating remortgages and mortgages

The Financial Services Authority, the financial sectors watchdog, has highlighted poor practise from lenders and advising firms when dealing with clients with poor credit ratings.

In its latest review, weaknesses were found in the assessments made by lenders and advisers, of a borrowers ability to afford a mortgage. As a result The FSA has begun enforcement action against five firms, which it refused to name.

Sam Cook from Wiseman Financial Management stated " It is no good arranging a remortgage to sort out credit problems unless the client can be clearly demonstrated to be better off on a monthly basis. We ensure we carry out a full fact find on our clients to ensure affordability, document everything thoroughly and issue our clients with a suitability letter so that they understand exactly what has been recommended and the reasons for the recommendation."

www.you-can-remortgage.co.uk