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Mortgages are ‘hardest financial product to switch’

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06/05/2015
More people are remortgaging this year, but at the same time more describe the process as becoming harder since the introduction of new rules last year.

Research by price comparison website Go Compare showed 59% of people described the process of switching their mortgage as easy.

This is down from the 70% recorded in July 2014, shortly after the Mortgage Market Review (MMR) rules was introduced.

Under these new rules, would-be borrowers are asked more questions about their finances and face a longer mortgage application process.

The survey found home insurance was the easiest product to switch followed by car insurance and then credit cards.

Mortgages were found to be the most difficult financial products to switch. By comparison, 90% of home insurance switchers found it easy to move between providers.

Matt Sanders from Go Compare said people were frustrated by the longer application process.

“It is clear from our research that consumers have taken issue with the changes to the mortgage application process introduced 12 months ago,” he said.

“To put it into context, the recent improvements in bank account and energy switching have failed to register at all on this survey, yet mortgages have slipped 11 percentage points. It would be fair to say that mortgages were never the most straightforward product to switch, but MMR has added an extra layer of complexity and in many cases led to delays in the process which just frustrates people further.

“MMR has undoubtedly prolonged the process of applying for a mortgage, but a mortgage is still one of your biggest financial outgoings therefore it’s good to know that the importance of affordability is now at the heart of what they offer, which at the end of the day benefits the customer as well as providers.

“Even though applying for a mortgage is more complicated, there has never been a better time to shop around and with record low interest rates, the hassle of going through the checks and balances might be worth it to save yourself some cash every month.”

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