In today's Budget the Chancellor has announced proposals to change confusing mortgage fees that can leave people paying over the odds.
As the progress report (below) details, Which? has been working with the Council of Mortgage Lenders (CML) to simplify the bewildering range of complicated fees and charges in the market. These changes should be in place by the end of 2015.
The 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.
In July Which? and the CML will publish firm proposals and a timeline for implementation.
In good news for our Sneaky Fees and Charges campaign, Barclays has announced that it has simplified its mortgage fees.