Comparing mortgage fees is about to get a lot simpler with a new tariff spearheaded by the CML and Which?
Comparing the cost of mortgage fees is about to get a lot simpler.
The myriad and often complex charges associated with taking ot a mortgage will be standardised, making it easier for home buyers to compare costs.
A new tariff, created by the Council of Mortgage Lenders (CML) and consumer group Which?, will be used by 85 per cent of the UK's lenders and will use standard terminology, formatting and descriptions, as well as listing each fee in the same order. It covers fees for applications, legal costs, the product and valuation
“Lenders have successfully pulled together to put in place some sensible measures to help consumer understanding," said CML director Paul Smee. "We very much hope that the new tariff and standard terminology will make it demonstrably easier to understand and compare mortgage costs. Working jointly with Which? has been invaluable.”
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Mortgage lenders will adopt the tariff by the end of the year. The are 11.1m mortgages in the UK worth more than 1.3 trillion.
The two groups will work on a way of making it easier for consumers to compare APR on different mortgages over different time periods to put into action next year.
“Thousands of people supported our call to end confusion around the cost of mortgages, so we’re pleased that our work with the CML has resulted in simplified fees and charges," said Which? executive director Richard Lloyd. "This new approach should make it much easier for people to compare mortgage fees. We hope that all mortgage providers will make these changes as soon as possible.”