Mortgage Loans, Home Loans, Bad Credit Home Loans

MFAA have come out in support of Deferred Establishment Fees claiming that their presence in the Mortgage Market actually promotes competition between lenders with the result being lower interest rates for the borrowers.

Deferred Establishment Fees are a mechanism that facilitate the non-bank sector to offer the most competitive interest rates possible to borrowers.

“Non-bank lenders provide consumers a strong alternative in the lending market, in many cases offering very competitive interest rates,” MFAA chief executive officer Mr Phil Naylor said yesterday.

Unfortunately if non bank lenders were required to remove Deferred Establishment Fess their interest rates would no longer be attractive to the consumer and they would be forced out of business thus perpetuation a ‘monopoly-like’ environment.