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Mortgage holders put off switching to better rates

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Despite being in line to save up to £294 per month, nearly 60% of mortgage holders are put off switching due to "jargon-filled contracts", according to research. Which found that this lack of switching is costing consumers across the nation an estimated £15.5 billion a year. Additional polling found that more than half (52%) adults think they have overpaid for something because they signed a contract without fully understanding it.

One in three (34%) mortgage holders said they only read up to a quarter of the way through their contract because they were confused by the language it contained. They said that legal jargon (51%), confusing terms and conditions (48%) and the explanations of the implications of not adhering to the contract (34%) should be re-written to be easier to understand.

Combining seven independent readability measures, tracking features such as average word length (in syllables) and average sentence length, the University of Nottingham's Linguistic Profiling for Professionals department, found that the educational reading age needed to fully understand a mortgage contract is A-level standard, well above the average national reading age of 12. 90% of those surveyed believe the language used in contracts could be simplified and 95% of those questioned said that they think the Government should regulate to force providers to make contracts easier to understand.

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Posted by MMB Finance Swindon and Gloucester on 8 July 2018