Last year, the independent review service Which? released findings suggesting that mortgage charges are too complicated, and buyers find themselves paying more than they need to simply because it is too difficult to understand exactly what they’re actually being charged for. Now it seems that mortgage providers are actually listening, as a recent report from the BBC suggests that banks and building societies alike have plans to make things simpler and easier to digest.
So what’s the Problem?
As it stands, the mortgage market is full of complicated fees that often masquerade under confusing names; in fact, Which? found that there are over 40 separate named charges listed by the variety of different lenders, many of which actually refer to exactly the same services.
This leads to the issue that people don’t necessarily know what it is they’re paying for, and can also find it difficult to compare the options on offer when different lenders don’t talk in the same terms.
A Possible Solution?
In response to this issue, the Council of Mortgage Lenders (CML) and Which? have put together a new tariff with a standardised list of charges which should bring a lot of order to what is currently something of a jumble, and so far around 85% of the mortgage lending market has agreed to start using the list. This is a very positive result for those looking to buy a house in the future, as the buying process is complex enough without the addition of unnecessary extras.
Meanwhile, the CML are also reporting that the mortgage industry is the strongest it has been in 7 years, with lending up almost 20% from last October. Despite this, there is a troubling lack of properties up for grabs across much of the country, and with more buyers than sellers prices could be set to rise. Of course, at the moment this is merely a prediction and fluctuations within such a dynamic market should never come as too much of a surprise.
Even with the upcoming introduction of these simpler charges, it is often advisable to go to a professional agency for mortgage advice; it never hurts to have an experienced advocate on your side! Here at Burton and Fisher we can provide a range of services including mortgage and pension advice and wealth management in Lancaster – providing vital information and support. Please get in touch with us today, online, at 01524 416872 or over on our Facebook, Twitter and Linked In pages to start the conversation.