Two in five mortgage holders switch banks for better deals, data reveals
Among mortgage holders who switched banks, 41% did so for customer-only mortgage deals and rates, while 30% switched for a mortgage-related incentive.
Two in five mortgage holders who changed banks did so to secure a better mortgage deal, research from the Current Account Switch Service found.
Among mortgage holders who switched banks, 41% did so for customer-only mortgage deals and rates, while 30% switched for a mortgage-related incentive.
28% switched for higher interest rates on their deposit, while 41% wanted additional perks.
Better budgeting or money management tools were cited by 29%, with the same proportion switching to consolidate their accounts.
Only 15% of people changed their bank account when moving home.
Around 58% did not review or consider switching banks during their move.
Of this group, 32% did not realise it was something they should consider.
Half of 18 to 24-year-olds and 51% of those aged 25 to 34 considered switching, compared with 30% of 45 to 54-year-olds and 19% of over-55s.
Around 22% of 18 to 24-year-olds switched accounts, compared with 8% of over-55s.
67% of over-55s said they would not normally consider reviewing their bank account during a move, compared with 25% of 18 to 24-year-olds.
The Current Account Switch Service advised consumers to seek financial advice from existing and potential lenders before changing bank accounts.
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.
“As the backbone of your finances, you should take your choice of banking provider seriously and ensure your current account is meeting your needs and goals.”
Dentry added: “If you decide to switch, it won’t add any burden or cost.
“You simply pick a new bank or building society, request a switch, and we’ll do the rest within seven working days. It could be the easiest move you make!”
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