In order to help borrowers find the cheapest deal, building societies and banks will simplify mortgage information, pledging to get rid of confusing terminology.
Which? and the Council of Mortgage Lenders (CML) have launched a new tariff together which explains mortgage fees in a standardised format.
In 2014, Which? issued a warning that people might be paying more than they should because of complex and confusing charges involved with mortgages. This was after research found that there were more than 40 different terms for fees and charges, many referring to the same thing.
Chancellor George Osborne asked Which? and the CML to create a new tariff together, with the standardised format ensuring that lenders use the same terminology in the future, as well as the same format (i.e. fees will be listed in the same order by each lender).
A number of lenders, who represent 85 per cent of the market between them, have already agreed to use the new tariff. They will be displaying it on their websites by the end of 2015, so home buyers can compare deals more easily.
“We’re pleased that our work with the CML has resulted in simplified fees and charges. 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,” said Richard Lloyd, executive director of Which?.
