The Council of Mortgage Lenders and consumer group Which? have launched a new mortgage fees tariff to help consumers avoid confusion when comparing charges.
The introduction of a standard format for how lenders communicate their fees should make it easier for customers to understand charges and compare deals.
Under the new format, different lenders will now use the same names for fees and list them in the same order with the same descriptions.
Lenders representing 85% of the market have already committed to introducing the tariff by the end of the year and it is expected the remainder will follow suite.
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. Working jointly with Which? has been invaluable.”
The two groups said they would continue to work together to help consumers and plan to agree a standard comparison method early next year for lenders to adopt in 2016.
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