KFIs should include cost over product term to be useful

From Bob Singh

If Key Facts Illustrations retain their current format they’re unlikely to be used as a comparison tool by consumers. The dream that they might aid choice and ease comparison of products is still distant.

Lenders should provide a ‘true cost’ figure in their KFIs, not over the whole mortgage term but for the duration of the product, as well as a figure for the cost over the mortgage term assuming the client is financially inept and does move, doesn’t remortgage and does not need any further borrowings.

That way consumers can filter out the good from the bad and, because brokers’ fees will feature in the true cost, the figure will be more meaningful still.