Consumers finding mortgages harder to switch, report shows

For the third consecutive year, mortgages were considered the most difficult product to switch with only 45% of people saying that the process had been straightforward, according to research from Go Compare.

Related topics:  Mortgages
Rozi Jones
5th April 2017
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"The banking and telecommunications industries clearly still have work to do to recognise consumers’ right to switch and find a better deal."

This figure is down on the previous year when 61% said they found the process easy.

Over 1,150 consumers who have shopped around for financial services products in the last 12 months were surveyed.

At 88%, home insurance was once again voted as the easiest product to switch.

Last May, the government announced plans to make switching providers "quicker and easier" across a range of sectors, including mortgages.

Its new proposals could allow consumers to switch provider in a week or less, in line with current account switching, and the rules could be in place as soon as this year.

Matt Sanders from Go Compare said: “The banking and telecommunications industries clearly still have work to do to recognise consumers’ right to switch and find a better deal.

“New tougher mortgage lending rules introduced in 2014, which changed the way lenders assess the affordability of mortgage loans probably, in part, account for mortgages being considered the hardest product to switch. Affordability criteria now takes account of a would-be borrower’s overall financial health as well as their earnings – adding to the complexity of the remortgaging process and the amount of information required.

“Efforts have been made in recent years to make switching bank accounts easier. The Current Account Switching Service is a free, largely automated service which enables you to change your provider in seven working days. In the event of things going awry, participating banks guarantee to refund any charges or lost interest."

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