Lenders to make fees clear and consistent
Mortgage fees and charges are set to become clearer, following the publication of a new tariff of mortgage charges, that will be standard across the industry.
It is part of a wider initiative from the Council of Mortgage Lenders and Which? to make mortgage costs more transparent.
Now lenders will communicate their fees using the standard format of the tariff, making it easier for consumers to compare charge on a range of deals.
Different lenders will now use the same names for fees, and will list them in the same order, with the same descriptions, to make it easier to compare between lenders.
Mortgage lenders representing 85% of the market have already committed to introducing the new tariff and putting it on their website by the end of the year, and the Council of Mortgage Lenders anticipates that other lenders will choose to adopt it in 2016.
CML director general Paul Smee said: “Lenders have successfully pulled together to put in place some sensible measures to help consumer understanding. We very much hope that the new tariff and standard terminology will make it demonstrably easier to understand and compare mortgage costs.”