View more on these topics

Railway society says borrowers still baffled by real cost of loans

Many borrowers are left confused about the true cost of a mortgage when shopping around for the best deal, according to Stafford Railway Building Society.

Manager George Robson says borrowers are often bombarded with information on interest rates, discount deals and cashback offers but still have little idea of how much a mortgage will cost them, despite strict rules on how interest rates are advertised.

Robson believes a loan&#39s annual payment rate – not its headline rate – should be used as the yardstick to compare deals between lenders.

He says the APR takes into account the extra charges often added to a mortgage, such as admin fees, set-up fees and redemption penalties. When these charges are added up, Robson says the APR is often far higher than the headline rate.

He says: “It is the APR that should be used to compare rates between lenders because it reflects the true cost of borrowing the money.

“People need to ensure they are aware of the charges that may be attached to a mortgage and perhaps look to secure cheaper monthly repayments by switching mortgage provider.”


&#39Raising awareness will be an all-round task&#39

Tackling low financial awareness is a long-term task which demands a concerted effort from financial advisers, the Government and other parties, says the FSA.Its warning follows last week&#39s publication of a report by the National Association of Citizens&#39 Advice Bureaux which highlights the impact of financial literacy on individuals&#39 financial security.In the wake of the […]

Inside edge

If businesses merge to achieve efficiencies and become more effective, why should regulators not take advantage of the same potential remedy?The question is largely academic now that N2 looms and that, to all intents and purposes, we have already entered the new age of a single financial regulator. But it is still worth taking a […]

IFAs strengthen grip on life and pensions

IFAs&#39 dominance of the life and pension market is continuing to strengthen, with their market share rising to 77 per cent from 68 per cent of individual pension sales.Latest ABI figures for the third quarter of 2001 show pension business is growing rapidly, with sales of individual pensions up to £805m equivalent premium income from […]

Aberdeen looks to growth

Aberdeen Asset ManagersAberdeen Growth Opportunities VCTAim: Growth by investing in smaller unquoted companies in the UK.Minimum investment: £3,000.Opening-closing date: September 27, 2001 – April 5, 2002.Charges: Annual 2 per cent for the first year, 2.5 per cent thereafter.Commission: Initial 3 per cent, renewal 0.5 per cent for investments of £500,000 or above.Tel: 0845 3002830.Broker Panel:-James […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm