The Council of Mortgage Lenders and Which? are today launching a new “tariff of mortgage charges” that will introduce a standard format for how lenders communicate their fees, to make it easier for customers to understand charges and compare deals.
Following a Which? campaign to end the confusion around mortgage costs, the Chancellor asked the CML and Which? to work together to find ways to make it easier for consumers to understand and compare the costs of different mortgages with different lenders.
Since then, we have worked jointly to address this problem and today are launching a new tariff to help make it easier for people to understand mortgage fees and charges. There are two key improvements within the tariff:
- Standard terminology: Different lenders will now use the same names for fees, as Which? research previously found consumers find the existing range of names for similar fees too confusing.
- Common format: Each lender will list fees in the same order, and with the same descriptions, to make it easier to compare between lenders.