Ian Scott International


Mortgage tariffs to be simplified by lenders

Banks and building societies are to simplify mortgage information, to help borrowers find the cheapest deal.

The Council of Mortgage Lenders (CML) and consumer group Which? have jointly launched a new tariff, spelling out mortgage fees in a standardised format.

The move comes after Which? warned last year that people could be “paying over the odds” due to complex charges.

Which? also said there were 40 different names for fees and charges in use, often for the same service.

For example an application fee – a charge for assessing and processing an application – could also be named a booking fee or a reservation fee.

The CML and Which? were asked by Chancellor George Osborne to work together on the new tariff.

It has standard terminology, so lenders will in future use the same names for fees.

It will also have a common format, so that each lender will list fees in the same order, with the same descriptions.

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