Two in five mortgage holders who switched banks said they did so to access a better mortgage rate deal (41%), while 30% switched to receive an incentive related to their mortgage, new research from the Current Account Switch Service shows.
But while over half of consumers (53%) spend five hours on average researching different parts of their move, few found time to assess their banking options, with just 22% looking into current accounts or banking options compared with around half who researched local property prices (50%), energy suppliers (48%) and broadband providers (48%).
Younger home movers were significantly more likely to reassess their banking arrangements during a move. Half of those aged 18 to 24 (50%) and 25 to 34 (51%) reviewed or considered switching their current account, compared with just 30% of those aged 45 to 54 and fewer than one in five over-55s (19%). This translated into higher switching levels among younger movers, with more than one in five 18 to 24-year-olds (22%) going on to switch - more than two and a half times the proportion of over-55s who did so (8%).
Conversely, 67% of over-55s said they would not normally consider reviewing their bank account at all during a move, compared with 25% of 18 to 24-year-olds, suggesting many older home movers may be overlooking potential benefits such as better rates, incentives and money management tools at a time of significant financial change.
Of those who own a mortgage and switched banks, two-fifths (41%) switched to take advantage of customer-only deals and mortgage rates. Just under a third (30%) switched to receive an incentive related to their mortgage and 28% switched to access higher interest rates on their deposit.
Others switched to take advantage of additional perks (41%), secure better budgeting tools or money management (29%), and to simplify their finances by consolidating accounts (29%). Despite these benefits, a majority (58%) of home movers didn’t review or consider switching banks as part of the process.
John Dentry, product manager at Pay.UK, owner and operator of the Current Account Switch Service, said: “Moving home is one of life’s more stressful milestones, and at a time when every pound counts, consumers need to be unlocking all the help they can get. With rates well above the low figures of a few years ago, taking time to compare current account options alongside mortgage arrangements can make a real difference, as could extra interest on your deposit, improved financial planning tools and tailored mortgage advice."
