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Loans Latest News Mortgage jargon confuses homeowners Mortgage jargon confuses homeowners
Mortgage jargon has increasingly become a thorn in the side of Britain's homeowners, according to research by the Financial Service Authority (FSA).
One third of 800 mortgage holders polled said they did not understand at least half of the wording of their mortgage, while over half did not know what APR they were paying.
Furthermore, just under two thirds of first time buyers did not know what APR stands for.
In response to the figures the FSA has launched a new website offering consumers objective, jargon-free advice.
David Whitely, spokesman for the FSA, said: "The website isn't aimed at replacing the sales process. It's for people to get some basic information before they sit down with an adviser or they go to a lender so it's not such a daunting process and it doesn't seem such a mystery."
The launch of the website comes almost 12 months after M-day, when new rules intended to make mortgage buying more consumer friendly came into force.
For more information on mortgage brokers click here
One third of 800 mortgage holders polled said they did not understand at least half of the wording of their mortgage, while over half did not know what APR they were paying.
Furthermore, just under two thirds of first time buyers did not know what APR stands for.
In response to the figures the FSA has launched a new website offering consumers objective, jargon-free advice.
David Whitely, spokesman for the FSA, said: "The website isn't aimed at replacing the sales process. It's for people to get some basic information before they sit down with an adviser or they go to a lender so it's not such a daunting process and it doesn't seem such a mystery."
The launch of the website comes almost 12 months after M-day, when new rules intended to make mortgage buying more consumer friendly came into force.
For more information on mortgage brokers click here
Friday, 28 October 2005 16:22
Top 5 Personal Loans
|
Loan |
Representative APR |
Min Loan |
Max Loan |
Min Term |
Max Term |
Apply |
|---|---|---|---|---|---|---|
| View Full Table > | ||||||
 |
6.8%
|
£7,500
|
£14,999
|
1 Year
|
5 Years
|
|
| Representative Example: £7500 borrowed over a period of 5 years at 6.8% (fixed) equals monthly repayments of £148 and a total amount repayable of £8,868. There are no other charges included in the total charge for credit. | ||||||
 |
8.2%
|
£5,000
|
£7,499
|
1 Year
|
7 Years
|
|
| Representative Example: £5000 borrowed over a period of 5 years at 8.2% (fixed) equals monthly repayments of £102 and a total amount repayable of £6,112. There are no other charges included in the total charge for credit. | ||||||
 |
6.1%
|
£7,500
|
£14,999
|
1 Year
|
10 Years
|
|
| Representative Example: £7500 borrowed over a period of 5 years at 6.1% (fixed) equals monthly repayments of £145 and a total amount repayable of £8,721. There are no other charges included in the total charge for credit. | ||||||
|
|
8.1%
|
£15,001
|
£25,000
|
1 Year
|
7 Years
|
|
| Representative Example: £15001 borrowed over a period of 5 years at 8.1% (fixed) equals monthly repayments of £305 and a total amount repayable of £18,293. There are no other charges included in the total charge for credit. | ||||||
|
|
6.1%
|
£7,500
|
£15,000
|
1 Year
|
7 Years
|
|
| Representative Example: £7500 borrowed over a period of 5 years at 6.1% (fixed) equals monthly repayments of £145 and a total amount repayable of £8,721. There are no other charges included in the total charge for credit. | ||||||
