Broker could be facing severe problems
According to a recent report the well known broker, John Charcol, could be facing immense future difficulties, which could see it losing the ability to continue operating. The broker’s own auditor has warned the firm that it faces ‘material uncertainty’ over its future. This comes at a time when many lenders and brokers in the mortgage industry are suffering real problems as the result of the global credit crunch, which has been wreaking havoc across the UK since last summer.
The report goes on to state that the auditor figures show that the brokerage firm’s liabilities are well over half a million pounds more than its assets. The company has £820,000 worth of deferred loans, and following the report officials from the company insisted that the firm was not facing problems. However, the report did claim that officials from the brokerage firm were deciding whether they would opt for a takeover offer or whether the firm would refinance operations in the future.
The chief executive of the firm confirmed that there had been some takeover offers that were being considered, but he did not say whether the deferred loans amounting to £820,000 would be paid off by the deadline, which is this month. In fact, he also went as far as to say that business was thriving in terms of the number of customers seeking advice and assistance, as more and more consumers were turning to brokers as a result of the credit crunch.
It is not just broker firms that have been adversely affected by the credit crunch, as many lenders have had to restrict lending operations and cut back on the number of products available. This is due to problems with raising the funds required to finance their lending operations to the same levels as in the past.
Recent additions:
- Financial difficulties loom for homeowners
- Interest rates on personal loans continue to rise
- Loans market still suffering due to credit crunch
- Avoiding risks with an unsecured personal loan
Related Posts
Brokers complain over lack of access to mortgage deals
Whilst the global cr4edit crunch has hit all sectors of the mortgage industry extremely hard over recent months the news has been dominated by stories about how lenders and consumers have really suffered as a result of the effects of the credit squeeze. Lenders have found it increasingly hard to get finance for their mortgage lending operations, and therefore have had to tighten credit conditions, increase the cost of borrowing, and remove various mortgage products from the shelves. This has, of course, impacted on consumers, who have found it increasingly difficult to get an affordable mortgage due to lack of accessibility, availability, and affordability.»
Asda may enter mortgage market
For many people Asda is a place to go in order to do the weekly shop, purchase a few odds and ends, or look for bargains on some household goods and gadgets. However, like other supermarket giants over recent years, Asda has added a number of financial products to its range, such as loans, credit cards, and insurance services. It has now announced that it is thinking of entering into the mortgage market, with officials claiming that the company may be able to try and ease the currently difficult mortgage market by offering more choice for consumers.
»Northern Rock uses taxpayer’s money to revive mortgage lending
The nationalised bank, Northern Rock, is apparently using taxpayers’ money to revive its mortgage lending operations, according to recent reports. »
Phantom mortgage cause problems for homebuyers
According to a recent report a number of lenders are offering mortgages that do not actually exist, which is causing problems for many buyers who think that they have found the perfect mortgage deal only to find that there is no mortgage deal to be had.»
Rise in number of dodgy mortgage brokers
Over the past three years there has been a marked rise in the number of mortgage brokers under the watchful eye of the UK’s financial regulator, the Financial Services Authority, with a rising number of brokers being fined for malpractice and mis-selling. The FSA has been cracking down particularly hard over the past year as a result of the chaos and turbulence that has gripped the financial, mortgage, and housing sectors since the onset of the global credit crunch.»
[...] Broker could be facing severe problems [...]