Homeowners taking out mortgages are still being ripped off a year after regulations were brought in to protect consumers, says Nationwide Building Society.
The building society says that Britain's 150 mortgage lenders and advisers are still taking advantage of homebuyers, even though statutory regulation was brought in on October 31st last year.
Nationwide has decided to publish a list of tips to save consumers being ripped off by unscrupulous lenders and advisers - and has abolished its higher lending fee.
The building society has warned those hunting for a suitable mortgage not to be drawn in by low interest rates.
"Don’t be fooled by an initial low interest rate that has extended redemption penalties. Rarely, if ever, does the benefit received from the low initial rate outweigh the burden of the higher rate at the end of the period, so be careful!" said Nationwide executive director Stuart Bernau.
Nationwide has also warned those looking for a new mortgage to avoid mortgages which charge annual interest, ask for higher lending fees and offer insurance products tied in with mortgages.To read more about Mortgage News, click here.
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