Switching mortgages: Why are we so reluctant to change provider?

A MORTGAGE is the biggest financial outlay most of us are ever likely to have.

So why do so many of us stick with the same mortgage provider, even when we are clearly paying over the odds?

In recent years more and more consumers have been persuaded to switch their insurance firm, energy company or bank account.

Yet when it comes to mortgages, there’s still a reluctance to do so.

According to Gocompare.com, consumers see mortgages as the most difficult financial product to switch, with just 61% of those who shopped around in the last year saying they found the process easy.

When asked what had made switching products difficult, 28% said they had to answer too many questions or provide too much information.

A quarter said the process was too complicated, while 32% said the switching process took too long.

Matt Sanders, head of money at Gocompare.com, said: “Comparing prices and switching is an easy way to save money on insurances, household utilities and other financial products.

“Although it can take a bit of work to get all the paperwork and information, it’s worth the effort. Customers in the habit of regularly reviewing their financial arrangements can significantly reduce their outgoings.

“For the second year running, consumers have told us mortgages are the hardest financial product to switch.

“This in part can be explained by the tougher lending rules which came into effect in April, 2014.

“These require lenders to assess the affordability of a mortgage by looking at would-be borrowers’ overall financial health as well as their earnings.

“Undoubtedly, the new application process has added to the complexities of remortgaging and increased the amount of information prospective borrowers need to provide.”

Bank of Mum and Dad is propping up a quarter of this year’s mortgages