150,000 mortgage borrowers could save over £1,000 a year by switching: FCA

The FCA has released a new statement on switching in the mortgage market, estimating that 150,000 mortgage borrowers could save over £1,000 a year for two years by switching.

Related topics:  Mortgages
Rozi Jones
2nd August 2022
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"We recently asked lenders to consider what more they can do to encourage mortgage borrowers to think about switching to a less costly option where that is available."

The number of mortgage borrowers not switching their mortgage deal when they could save money by doing so has declined significantly since 2016, FCA data shows. It now estimates that borrowers of 370,000 mortgages could save money by switching their mortgage but do not, down from 800,000 in 2016.

Around 110,000 would save less than £500 a year for two years, 110,000 would save between £500-£1,000 a year, and the remainder would save over £1,000.

In its statement, the FCA said: "Given the rising cost of living, it’s important that borrowers consider their options and switch if they can where it meets their needs and circumstances and saves them money. Lenders and mortgage intermediaries should support customers to do this and we recently asked lenders to consider what more they can do to encourage mortgage borrowers to think about switching to a less costly option where that is available.

"We will continue to monitor the market, particularly given the impact on borrowers of increasing mortgage rates and the rising cost of living and consider what further steps we may need to take."

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