KFIs reveal true cost of borrowing, says Nationwide

Nationwide claims that consumers are able to make more informed decisions about choosing a mortgage since statutory regulation.

The regulations require lenders to produce a Key Facts Illustration to show the total amount of money payable over the full term of a mortgage.

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

Stuart Bernau, executive director of Nationwide, says: “Simply focussing on headline rates does not necessarily give the consumer the true picture of how much a mortgage costs.

“The KFI however, has a lot more information. It details the headline rate, all fees, the total amount payable, the amount payable per pound borrowed and the monthly payments.

“We believe that 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.

“Not only do we have a very competitive BMR, but we also offer all of our rates to both new and existing customers.”