How we’re fighting for fairer mortgages, and how you can join us
On Thursday 4th April we invited a group of our customers to Trussle HQ to give them a sneak peek of how we’re planning to fight for fairer mortgages.
We talked about the ways the mortgage industry is broken, where there’s room for innovation, and how borrowers will benefit from a Mortgage Switch Guarantee.
Two million mortgage holders are overpaying thousands
Official Government figures show that mortgages are the largest source of debt for households in the UK. But we've calculated that a quarter of mortgage holders are losing on average £375 per month because switching mortgage isn’t clear or simple.
The total cost of these unnecessary mortgage overpayments collectively costs borrowers £9 billion a year.
According to The Bank of England, these households are disproportionately likely to be poorer, less educated, and have a higher portion of retirement age occupants, showing that more needs to be done to protect vulnerable groups.
But despite these astonishing figures, other markets such as energy and current accounts have received significantly more attention from the Government and financial regulator in order to achieve greater fairness for consumers.
The Mortgage Switch Guarantee
We've spent two years campaigning for the introduction of the Mortgage Switch Guarantee to set a higher standard of transparency for lenders, to make mortgage switching easier for borrowers.
Similar initiatives in the energy and current accounts sectors have been backed by government and industry. But while the Energy Switch Guarantee initiative claims it saves households that switch around £300 a year, we calculate the Mortgage Switch Guarantee would help those on their Standard Variable Rate (SVR) save over 10 times that.
The Mortgage Switch Guarantee calls on lenders to:
contact borrowers three months before their initial rate period ends, electronically and by post
show borrowers key mortgage information online, or via SMS messages
display the True Cost of a mortgage’s initial rate period
Each day, borrowers spend £25million in unnecessary interest because switching mortgage is complicated and painful.
This is why we back the Mortgage Switch Guarantee. Now we need your support.
To join the fight for fairer mortgages, back the Mortgage Switch Guarantee.