Many borrowers have become reliant on brokers

According to a recent report many borrowers that come under to category of sub-prime borrowers have become increasingly reliant on brokers to help them to find finance such as mortgages.

With credit conditions becoming increasingly tight because of the global credit crunch many may think that using a broker is their only hope of getting the finance that they need.

However, there are concerns that by relying so heavily on brokers and assuming that they cannot source and find finance deals for themselves many consumers could be compromising on choice and ending up with a raw deal on their borrowing. Officials from the Financial Services Authority have stated that this situation means that many consumers are not making an informed choice when it comes to borrowing.

Recent research showed that many sub-prime borrowers were under the impression that the broker would definitely find them the best deal available based on their needs and circumstances, and most were focusing on short term availability.

Many had not even bothered to look for themselves, convinced that they would not be able to get the finance that they needed.

It was also revealed that the majority of those using a broker do not bother to double check the information provided, and simply go with whatever the broker recommends.