Following a joint government-backed initiative, the Council of Mortgage Lenders (CML) and Which? have recently published a report identifying a set of voluntary industry-wide measures to improve transparency of mortgage fees and charges for consumers.
The report sets out that lenders have agreed to:
- Inform customers about mortgage fees and charges at an earlier stage of shopping around for a mortgage
- Provide a standardised industry tariff of mortgage fees and charges, to help customers compare mortgages (as set out in Annex 2.3 of the Report)
- Establish the use of common terminology for fees and charges and descriptions of what they entail (which will be contained within the tariff of mortgage fees)
- Provide additional information on their websites to enable customers to compare mortgage costs
Annex 4 of the report sets out the timeline for implementation and review of the new arrangements which anticipates that there will be an agreed standard template to compare mortgages by the end of Q1 2016.