According to a recent poll, fewer people now find it a simple process to switch their mortgage provider than they did a year ago.
The survey, conducted by Go Compare, asked more than 1,150 customers who had compared financial products during the last 12 months. For the third year running, mortgages were considered to be the most difficult product to switch. Just 45% of respondents said that they found switching mortgages an easy process, in comparison with last year’s figure of 61%. Home insurance was voted as being the easiest product to switch.
In May 2016, the government pledged to make it “quicker and easier” for consumers to switch financial products. This included a range of financial products, including mortgages. New proposals from the government could make it possible for consumers to switch to another provider in just one week or less, in line with the existing guidelines for switching bank accounts. The new rules could be introduced as early as this year.
Go Compare’s Matt Sanders, said:
“The banking and telecommunications industries clearly still have work to do to recognise consumers’ right to switch and find a better deal.”
One of the factors which has impacted on mortgages being the hardest financial product to switch, is the new mortgage lending rules which came into force in 2014. However, mortgage advisers have taken a CeMAP course, and have the required knowledge of the various lenders and their switching processes, which could make it easier for you to switch products.
