The Council of Mortgage Lenders (CML) and Which? have published a joint progress report to the Chancellor of the Exchequer.
This joint approach is to improve the information given to consumers so it’s easier to understand mortgage fees and charges and compare the overall cost of borrowing.
In July CML and Which? will publish firm proposals and a timeline for implementation.
The progress report outlines the key proposals for change, which are:
· Introducing a common approach by lenders to make their ‘tariff’ of fees and charges available to customers to avoid confusion and make it easier to find information about mortgage costs;
· Wider use of consistent terms to describe the same types of fees and charges that currently have an array of different names;
· Better explanations of whether fees are compulsory or avoidable and when they will be charged;
· Clearer ways of presenting information to help borrowers compare the cost of particular mortgage deals over specific periods, not just the upfront costs.
CML director general Paul Smee said: “This collaboration with Which? has helped lenders focus on practical and simple ways to help customers by making information more transparent and consistent. We hope customers themselves will find it easier and less daunting to make informed choices about their mortgages as a result.”
Which? executive director Richard Lloyd added: “This is good news for thousands of consumers who supported our call for an end to the confusion about the full cost of taking out a mortgage. Which? has been working with the CML to simplify the wide range of complicated fees and charges in the market so people don’t pay over the odds on their loan. We look forward to all mortgage providers making these changes so that people can get the best deals more easily.”
