Chase De Vere Mortgage Management director, Nick Gardner, pointed the finger at Northern Rock and Halifax in particular, with both firms offering over 30 two-year products. Although there are differences within Halifax’s two-year deals, Northern Rock offers 36 packages.
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As the government has aimed to simplify the mortgage market, it is claimed that the opposite has been done and that the industry has never been so flooded with different products.
Gardner said: “There are so many variations on loan-to-value ratios and arrangement fees that it requires some hardcore number-crunching to work out the best product for a particular client.
“However, the fact remains that while this extensive range is useful for brokers, the general public, and many introducers who don't have the time or expertise, will be totally confused.”
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Watson added that initial fact finding with customers identifies the type of product needed, with factors such as the amount of deposit available, affordability of monthly payments and the need for fixed rate terms focussing attention on the features and benefits to be considered.
Having a comprehensive range of mortgage options enables closer matching of customer requirements. Mortgage regulation and the use of Key Facts Illustrations to make comparisons between products and suppliers means borrowers have real choices for their mortgage finances.”
