Brits more likely to switch energy provider than mortgage deal
Consumers are more than twice as likely to switch energy tariff than mortgage deal, according to research from Trussle.
The morgage broker found that just 28% of borrowers have ever switched provider in search of a better deal, despite the fact that the average UK household pays £2,800 over the odds on their mortgage every single year by not shopping around.
However 63% of mortgage holders had switched energy provider, saving an average of £200 per year, according to Government figures.
Even the fall in base rate hasn’t been enough to encourage switching, said Trussle, with 94% of respondents saying they haven’t considered doing so since the rate was lowered.
Too much hassle
The key reason cited for not switching was the fear that the process would be too much hassle (for around 20%), while 14% claimed it was too complicated and 15% thought they’d be penalised. Just 7% said they stayed with their current lender out of loyalty.
Ishaan Malhi of Trussle said it was “shocking” that so many had never switched lender, “especially as households across the UK are throwing away thousands of pounds every year by failing to take advantage of the best rates on the market.
“Part of the problem is clearly a lack of awareness, but many borrowers are simply reluctant to face the ordeal of switching. However, mortgage rates have fallen to record lows, and technology is making switching mortgages easier than ever. Now’s the time for borrowers to take charge of the situation.”