The study of 18 leading mortgage lenders found wide discrepancies between lenders’ policies, with lenders such as Northern Rock and BM Solutions giving borrowers one month’s grace for a missed payment, while GMAC-RFC charged £50.
Moneysupermarket.com commended HSBC for its practise of not charging customers for returned cheques, direct debits, missed payments or debt counselling.
However, it criticised mortgage lenders, such as Britannia and Bristol & West, for charging ‘vulnerable customers’ £90 or more for debt counselling.
Moneysupermarket.com’s most scathing criticism was reserved for Cheltenham & Gloucester, which charged £372 for borrowers with a returned cheque or direct debit, three months arrears and an arrears advice appointment.
Louise Cuming, head of mortgages at moneysupermarket.com, commented: “We would question if these lenders are treating customers fairly, given the inconsistency of the fees and charges.
"Under the Mortgage Conduct of Business rules, regulated by the Financial Services Authority (FSA), all cases of financial hardship must be treated sympathetically.
"Lenders aren’t charities, but no one wins if they automatically burden customers with more fees and debt.”
Sue Anderson, head of member and external relations, at the Council of Mortgage Lenders, commented: “The reality is that each lender has to have its own checks and balances that it is treating customers fairly and embeds that in its business.
"The FSA is not a price regulator and we see this issue as one of transparency. Hopefully, no one takes on a mortgage expecting to be in arrears and they should certainly look at their lender’s arrears tariff.
"There is nothing secret about this and nothing inherently unfair. A universal practice is not necessarily good for the consumer.”
