When it comes to switching, mortgages are the product for which Brits are least likely to change provider, a survey by Equifax has revealed.
The credit reporting firm quizzed Brits on how likely they would be to switch if they were unhappy with the service from their current provider and only 7% said they would change their mortgage.
In fact, they would be far more likely to switch electricity and gas provider (41%) or change their internet and TV (33%) or phone company (31%) than they would to find a new mortgage, the study revealed.
There was also apathy towards switching bank accounts and credit card provider amongst the people surveyed online.
Yet, Equifax said by failing to switch, customers could be missing out on some attractive and competitive deals.
Robert McKechnie, open banking expert at Equifax, said: “In an age of greater banking transparency and with some attractive incentives available for switching accounts, consumers should be ready to take action if they feel their banking experience isn’t up to scratch.
“The inertia among consumers indicated many people think banking services are all the same, but with the rise of Open Banking and challenger banks, there is genuine competition in the sector.
“Exciting new tools that help manage your money bring definite benefits and it pays to invest some time to assess the market.”
Getting a better deal
Last week, the Financial Conduct Authority (FCA) announced measures to help thousands of borrowers stuck on expensive mortgage rates to move to more affordable deals.
One of the recommendations called for lenders to provide more tools to help borrowers switch and to assess their options when it came to finding a better mortgage deal.
Ishaan Malhi, CEO of digital mortgage broker, Trussle, thought there was currently a lack of transparency in the mortgage industry, which continued to prevent borrowers from getting a better and cheaper deal.
“There are still hundreds and thousands of borrowers failing to switch their mortgage at the right time,” he said.
“We need to see more innovation and increased transparency across the mortgage industry to help customers navigate the process more easily.
He added: “Our Mortgage Switch Guarantee aims to address and resolve this issue. Borrowers should be able to simply switch to a better deal, based on their own personal circumstances, at a time that is right for them. We’re working with lenders, regulators and government to drive positive change for home owners.”
