Consumers could benefit if the current method used to compare mortgages was changed, a new report has claimed.

Research conducted by Grant Thornton''s Financial Services Group and published by the Council of Mortgage Lenders suggested that using annual percentage rate (APR) to judge products against one another caused confusion and suggested that lenders instead introduce a new calculation, the dynamic annual rate (DAR).

While APR is based on the assumption that a mortgage will be held for the full life of the product, the DAR would factor in costs that could be incurred if people re-mortgaged before their deal expired.

Paul Cook, a partner at Grant Thornton''s Financial Services Group, told the Press Association: "The DAR allows [consumers] to realistically compare the cost of mortgages across different lenders and products, including all charges and any early repayment penalties that may apply."

Michael Coogan, director general of the CML, said that DAR "is a useful measure for consumers who are uncertain about how long they will hold their mortgages, and the intermediaries who advise them".