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Borrowers claim brokers fail to disclose charges

Most mortgage borrowers believe they are being kept in the dark by lenders and intermediaries when taking out a homeloan, according to Loans.co.UK.

In a survey of 1,100 borrowers, the intermediary website found most new borrowers believe brokers and lenders do not tell them about charges and penalties to avoid deterring them from taking out a mortgage.

The most common complaints were brokers failing to disclose the amount of commission they receive from a lender and the redemption charge for paying off their mortgage early.

More than 80 per cent of respondents were concerned that the small print in their contract was not adequately explained at the time of signing, with 60 per cent blaming the broker who sold the loan. Ninety per cent considered their contract to be weighted in favour of the lender, with 40 per cent pledging to switch to another provider when changing mortgage due to poor customer service.

Despite such high levels of dissatisfaction, only around a third of borrowers knew which regulator they should turn to register a complaint about their lender.

Loans.co.UK says the results demonstrate how far lenders and brokers have yet to go to improve the poor reputation of the industry.

Managing director David Cowham says: “Companies involved in lending money still have a great deal to do in order to win over the confidence of the public – no one should be lulled into thinking statutory regulation will be enough to change these perceptions.”

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