A view from the floor

Stuart Bernau, executive director at Nationwide, says Key Facts Illustrations have made it easier for consumers to track down the best mortgage

I believe regulation has made things easier for customers to see which lenders offer good value. Since the new mortgage regulations came into effect at the end of October, consumers have been able to make even better informed decisions about choosing a mortgage.

The new regulations require lenders to produce a Key Facts Illustration that shows the total payable over the full term of a mortgage. This illustration highlights the savings that can be made when choosing a lender with competitive deals and a low ongoing variable rate.

Looking at the true cost of a mortgage, as detailed in the new KFIs, is a more realistic way of comparing mortgages than simply looking at headline rates in the best buy tables.

Comparing headline rates does not necessarily give the consumer the true picture of how much a mortgage costs in real term. However, the KFI has a lot more information. It details all fees, the total amount payable, the amount payable per pound borrowed and the monthly payments. This is all essential information which enables borrowers to compare and contrast mortgages better than before.

Borrowers should not have to change lenders every few years in order to get a good deal and the KFI shows that with Nationwide it is possible to get long-term good value from one lender. This is where the benefits of offering one range to both new and existing borrowers really come into their own.