Is switching mortgages in seven days really a good idea for homeowners?
Following the announcement that the Government plans to speed up the process of switching mortgages, we take a look at what this means for homeowners.
June 9, 2016
The Government are currently consulting on plans to speed up the process of switching mortgages, with the aim to introduce a process that will only take seven days to switch.
‘Switching mortgages could be like switching bank accounts’
Georgie Frost at Share Radio UK spoke to our chief executive, Paula Higgins, to discuss plans to introduce a seven day mortgage switching process. Currently, it can take up to three months for homeowners to switch mortgages. However, switching a mortgage is not as simple as switching your energy supplier or bank account.
The Government rhetoric is that the new process will offer consumers ‘more choice and flexibility’. We think a seven day switch could actually make things more stressful for consumers – especially when dealing with such a big purchase and borrowing a large chunk of money. There are also worries that switching mortgages frequently could affect peoples’ credit ratings.
We want to see the Government encourage people to renegotiate their mortgages so they get onto better terms. We think the focus should be on making it easier for homeowners to port their mortgages, so they can move with their mortgage without having to pay thousands of pounds for arrangement fees.
“A seven day switch is a nice soundbite…but people should be able to move when they want to, not when their mortgage is ready to move.” – Paula Higgins
If you need advice on your mortgage or have a question about buying, selling or owning your home, join us as a member for expert property advice and support.
- Our mortgage service
- Seven ways to cut your monthly mortgage payments
- How do I port a mortgage?
- What type of mortgage should I get?
- How to make a successful mortgage application
- How to improve your credit rating before getting a mortgage
- Self-employed mortgages
- Step-by-step guide to energy switching
- Compare and switch energy suppliers