Mortgages need a shakeup
By Teamspirit on Tuesday, 22 May 2018
Hunting for a mortgage? You’ve got a less than one-in-three chance of finding the cheapest one available. That’s according to the latest report from the Financial Conduct Authority, which found that less than 33% of users manage to track down the best deal for them – and end up paying an average of £550 a year too much as a result.
Clearly that’s not good enough. And while the FCA’s report stopped short of saying competition was failing the customer, they blamed a lack of early-stage information around eligibility for dissuading prospective customers from shopping around.
One suggested approach would see providers make eligibility and other criteria available from the off – a move that would be welcomed by brokers as well as customers – while the FCA also want to make it easier for customers to compare brokers.
All this suggests there’s a considerable opportunity for anyone who makes it easier for mortgage customers to save money. Regulation is a vital part of the discussion about improving the market, but it’s only one side of the conversation. Ultimately any market where two in three customers have £550 to gain is ripe for disruption. The question is: by who?