Although buying a home is a time for celebration, the process of obtaining a mortgage can be a nightmare experience. Sajid Javid, the Communities Secretary, recently announced plans to make the house buying and selling process “cheaper, faster and less stressful”.
Mortgage broker Trussle is calling for a Mortgage Switch Guarantee, to make it easier for customers who want to move their mortgage, such as at the end of a fixed rate term. A recent study conducted by Trussle found that 10% of first-time buyers end up in tears as a result of the process.
According to the research, many buyers are put off by the initial mortgage application process, and end up paying the Standard Variable Rate of their lender at the end of their initial term. Calculations by Trussle show that homeowners in the UK are paying almost £15bn a year in excessive interest, suggesting the mortgage industry needs to act so that consumers are protected.
Trussle has been in talks with regulators, industry bodies and heads of policymakers since July this year to introduce a transparent process, where consumers are informed when a deal will be reaching its conclusion, and the terminology is simplified. According to Trussle, the Mortgage Switch Guarantee can work, just as the Current Account Switch Guarantee and Energy Switch Guarantee have worked.
Mortgage advisors work hard to stay abreast of all changes in the industry, and invest in CeMAP training so that they are aware of all terminology and procedures implemented by lenders.