View more on these topics

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.

Recommended

Lack of client knowledge sparks concern over TCF

Consumers are struggling to understand mortgage terminology and products, causing concern over the products they are being advised to buy. The latest One Specialist survey by BM Solutions finds that nine out of 10 brokers believe consumers have no idea what the London Inter Bank Offered Rate is and what it entails. This statistic in […]

Clydesdale offers capped offset deal

Clydesdale Bank has launched a product range to brokers which includes a two-year capped offset mortgage, the first time the bank has offered a deal of this type. The range includes improvements to its traditional plus offset tracker deals available as capped products. The products are a traditional tracker at 0.19% to 0.24% over base […]

BRE will use xit2 to train home inspectors

The Buildings Research Establishment has selected xit2 as a technology partner to support its home inspector qualification programme. The online Home Condition Report developed by xit2 will form part of BRE’s training programme leading to the Awarding Body for the Built Environment diploma in home inspection. From January 2007, all houses for sale will require […]

LIME clinches secured lending deal with Norton Finance

Lifetime Insurance Mortgage Experts has clinched a secured loan offering in partnership with Norton Finance.Secured lending has grown month on month throughout 2005, to an all time high of 8.9bn in August 2005, and the number of people choosing a secured loan as opposed to a further advance or remortgage has also increased steadily. LIME […]

Newsletter

News and expert analysis straight to your inbox

Sign up