4 Nonsense Loan Fees Charged by Some Mortgage Brokers

Here in Essex County there are virtually hundreds of Windsor mortgage brokers that can assist you with a mortgage loan. Just open our local Yellow Pages and have a look. Some agents are offering special mortgage rate programs, others refinancing, and others home equity loans. But sometimes when you really drill down into these loan programs, you may find what I like to call “nonsense fees” popping up.

While the majority of Windsor credit unions, lenders and mortgage agents are honest and often provide a positive experience, it’s very important that you be aware of some of the dishonest tactics you may encounter when you refinance or seek a Windsor home loan program.

If you live in Windsor, it’s no doubt you’re very aware of the troubled times we’re facing. Businesses are closing, layoffs and job losses appear in the Windsor Star almost daily. At the time of this writing, Windsor’s unemployment rate is 13.6%! With all of Windsor’s economic circumstances, choosing a mortgage broker who understands how to successfully work with our city’s unique challenges, and who doesn’t charge additional / extra fees, is crucial for positive loan outcome. In fact, avoiding unnecessary fees can save you thousands of dollars over the course of your mortgage loan. To be forewarned is to be forearmed….

Many of the nonsense fees you’re about to learn, are additional fees that are simply not necessary (in most cases). They can be fees completely made up or added by a Windsor mortgage broker who is simply trying to make more money from your refinance or mortgage loan, and sadly at your expense! It’s easy to conceal many of these fees within a complicated mortgage/refinance contract. And unless you have a lawyer reviewing every dotted “I” of your loan agreement multiple times, nonsense fees can be easy to miss.

Nonsense fees are created at the mortgage broker/agent level, and are completely at the discretion of the mortgage broker you choose to work with. Some Windsor mortgage brokers can get really creative with their fees. Here are just a few creative nonsense fees I’ve seen in the past:


  1. Lender Charges
  2. Document Processing Fees
  3. Retainer Fees
  4. Application Costs

The above listed fees can add up to hundreds, even thousands of extra dollars, and when you’re finished paying, you may end up paying more for a mortgage or refinance loan then you should have!

If you see any of these fees, call your Windsor mortgage broker or agent out on them. For instance, ask why you’re paying a lender fee, if your mortgage agent is already being paid by the lender for the same thing? Otherwise, your mortgage agent is basically charging double what he/she should be – in other words, double dipping.

A Few More Unfair Mortgage Loan Tactics That Could Cost You Thousands!

Mortgage Penalties: If your existing mortgage loan has a prepayment penalty, some lenders or Windsor mortgage brokers will offer to “handle” penalties when you refinance, just to keep your deal. What they often fail to mention is that you’re actually still paying them anyway. Some mortgage lenders will figure those penalty fees into the interest rate that they offer you. So not only are you actually paying them, you’ll pay interest on it as well.

Lender Tied Selling: Dishonest mortgage loan tactics are one thing; this next point pretty much crosses the line into being on the border line of illegal. If you have a Windsor mortgage loan with a particular lender, chances are you may have a credit card account or maybe even a line of credit with that same lender. Sometimes, when a lender learns that you may be refinancing your loan with a different financial institution, you may be told that your credit card account or credit lines may be closed if you refinance your Windsor mortgage loan with someone else. This is called Tied Selling and is considered illegal.

Monthly Interest Compounding – Some Windsor mortgage brokers or lenders will compound the interest on your refinance or mortgage loan monthly instead of twice a year, while offering you a slightly lower interest rate. This results in you paying much more interest in the long run.

Remember, cheap Windsor mortgage loans or refinancing options aren’t so cheap if it winds up costing you a whole lot more in the long run. Take the time to really understand the fees that any Windsor mortgage brokers put in front of you.

Scottish Debt Solutions – Trust Deed, Debt Management and Bankruptcy

Personal debt affects millions of people across Britain and at present there is an estimated 1,000,000 people struggling to manage their credit commitments. Over the next 5 years these people will try to find ways to pay their loans, credit cards and other unsecured debt. For a large percentage it will be an arduous task which will need professional help.

It’s important that when people are in debt they seek help as soon as they realise they can no longer manage their finances. This could mean the problem is resolved before it becomes too severe and the only options are a Trust Deed, IVA or Bankruptcy. There are a number of UK debt solutions which help thousands of people each year. In this article we have focussed on the Scottish debt solutions. The legal system in Scotland is different to England, Ireland and Wales which is why the debt solutions are not the same.

Recent statistics released have shown that the worst cities in the UK for personal finance were Glenrothes, Kirkcaldy & Livingston all of which are based in Scotland. It is more important than ever for the people of Scotland to know what help there is available for their debt problem. There is always a solution to debt, and in some cases there maybe two or three options available.

Scottish Debt Solutions

Debt Management Plan – The Debt Management Plan is an informal plan where the person in debt would repay all of the money they borrowed over a longer period than originally agreed. It’s predicted that across the UK 500,000 people are in a debt management plan right now, with 300,000 in a for profit debt management plan. The Debt Management Plan can be stopped by either party at any time.

Protected Trust Deed – This is a formal agreement which usually lasts for 36 months. The person in debt will repay a percentage of the money they borrowed over the term of the Protected Trust Deed. So long as the creditors agree to the solution and the person in debt continues to make their monthly contributions then the rest of their debt will be written off. Should the person in debt fail to complete the Protected Trust Deed they will most likely face Bankruptcy.

The criteria to enter a Protected Trust Deed is:-

– Unsecured Debt of at least £10,000,
– Disposable income each month of £100 and a return to creditors of at least 10%.

Each year around 9,000 people enter a Protected Trust Deed. The Protected Trust Deed is similar to the English, Welsh and Northern Irish Individual Voluntary Arrangement (IVA).

Sequestration – This is the Scottish equivalent to Bankruptcy. The Sequestration will last for one year, afterwhich the person in debt will be discharged. If the debtor is able to make a contribution towards their debt, then this will happen for 3 years. At the end of the solution any debt will be cleared, however a default will last on the person in debts credit file for 6 years.

(LILA) Low Income Low Asset – This is a new route into Sequestration (Bankruptcy). This solution was was launched back in April 2008 for people who have a low income and low / no assets. The solution enables people earning minimum wage, no asset worth over £1,000 and unable to meet any other debt solution the option to enter the LILA. You cannot enter a LILA if you own a house. The equivalent scheme for England, Wales and Northern Ireland is called Debt Relief Order (DRO).

Debt Support Trust is a not for profit debt advice charity that provides telephone and internet based debt advice. The charity values include

– Care

– Transparency

– Reliability

– Support

Guaranteed Auto Loan Approval For People With Bad Credit

When you are hit by bad credit and still need a car loan, the guaranteed auto loan approval is the best way to get behind the wheel of your own used or new car. With thousands of online lenders willing to provide you a guaranteed auto loan approval without a credit check, the process is simple and easy.

Before you set out shopping for the guaranteed auto loan approval, it is essential that you understand the significantly higher interest and finance costs attached to these types of loans. The rapid depreciation on your car has a higher element of risk for the lender and this leads to the higher costs.

A major advantage with online lenders is that you enjoy a number of facilities to pick the right lender and find the best offers possible. Shopping for guaranteed auto loan approval calls for patience and extensive research. Auto loans are a competitive business and many new players are entering the fray almost every day. Therefore, finding these new entrants and driving a hard bargain with them will work to your advantage. To stay afloat, the newbies need business and they are often times more willing to flex a bit to accommodate your expectations.

It is important that you carefully design your monthly payments against the guaranteed auto loan approval in relation to your income and disposable cash you have every month. A car loan calculator available from the internet is a useful tool to consider different combinations and varying attributes. Managing your monthly payments assumes greater significance particularly when your credit scores are not healthy enough.

Some websites also offer quotes from different lenders so that you can compare the numbers on a single screen. These websites are also considered safer to deal with since the security aspect of the website is monitored externally. Considering a substantial down payment of say 20 percent will help you bring down the loan value and correspondingly the monthly payments. Pegging the tenure of the loan to 24 or 36 months will further bring down the finance cost and interest charges on the guaranteed auto loan approval and this in turn, will be reflected in your monthly payments.

More importantly, the guaranteed auto loan approval will help you shop for the car with a pre-approved loan. Often times, this is a very helpful measure since you have abundant clarity on the type of car you are looking for and the accessories you must have. The car dealers’ sales personnel will therefore not be in a position to overwhelm you with all those ‘irresistible’ offers.

The guaranteed auto loan approval will also help you rebuild your credit report and bounce back to healthy levels. This can happen when you diligently plan your monthly payments over the entire tenure of the loan and do not allow any defaults. 6 months to a year after you have availed the loan, when your credit score improves, you can also refinance the loan through a different lender, bringing down the interest and costs and thereby the monthly payments.