We recognise that it can be very difficult to make informed choices when deciding on which mortgage to choose, particularly regarding the complexity and range of fees and charges that accompany the mortgage.
With this in mind, the Council of Mortgage Lenders has worked in collaboration with Which? to produce a standardised tariff of mortgage charges, in order to:
- make mortgage price comparisons easier for consumers
- to make the full cost of a mortgage clearer for consumers
- to ensure that additional mortgage fees and charges are cost effective
The aim of the initiative has been to give customers access to information at an earlier stage, when they are shopping around for a mortgage, rather than at the offer stage and with their annual statement, as has previously been the case.
Lenders have agreed to make the tariff of mortgage charges available to customers who enquire about a particular mortgage when shopping around, but who have not yet received a mortgage offer.
Lenders signing up to the project have agreed to adopt a common name for the tariff – the [Lender name] tariff of mortgage charges and have committed to publish the tariff by the end of 2015, showing the common fees that they charge, as well as any others that they specifically charge.
Over the longer term, we would like to see the work we have started here produce lasting and meaningful benefits for consumers.
To do this, we will keep under review areas where we think we can supplement regulation to make fees and charges more transparent for consumers.