New simplified mortgage tariff launched by CML and Which?
Mortgage information will become simpler and easier to understand following the launch of a new tariff by the Council of Mortgage Lenders (CML) and consumer group Which?.
The new tariff will introduce a standard format for how lenders communicate their fees, to make it easier for customers to understand charges and compare deals.
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."
Under the new format, lenders will use the same name for fees and will list fees in the same order, with the same descriptions.
Around 85% of lenders have already committed to introducing the tariff and putting it on their website by the end of the year.
"Thousands of people supported our call to end confusion around the cost of mortgages, so we’re pleased that our work with the CML has resulted in simplified fees and charges," Which? executive director Richard Lloyd said.
"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."