Responding to the news that Citizens Advice has lodged a new super-complaint, Eric Leenders, Managing Director, Personal Finance at UK Finance, commented:
“UK Finance and its members will carefully consider the issues raised by Citizens Advice and respond in due course.
“The industry has already implemented a number of measures to further improve competition in the mortgages and savings market, including communicating more clearly with savers about the rates they receive and helping longstanding mortgage borrowers switch to a better deal.
“We would always encourage customers to shop around and find a deal that best suits their needs and will continue working with the regulators to make this as easy as possible, including through standard terms and price comparison tools.”
Notes to Editor
- UK Finance is a trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
- UK Finance’s figures on mortgage product transfers have revealed 390,200 homeowners switched product with their existing provider (product transfers) in the first quarter of 2018. These figures echo the FCA’s findings in its interim Mortgages Market Study that customer engagement is high and the majority of mortgage customers switch to a new deal shortly after their previous deal expires.
- UK Finance’s latest figures show remortgaging was up 23.1 per cent on the previous year in July, with 46,900 new homeowner remortgages completed in the month.
- In July 2018, UK Finance announced a voluntary commitment by lenders to help longstanding mortgage borrowers on reversion rates, offering them the ability to switch to an alternative product if they meet the agreed standard criteria. This commitment is focused on customers with active lenders, with a view to further consideration of what might be possible for the 20,000 customers with inactive lenders and the 120,000 customers with unregulated mortgage owners, as identified by the FCA – who are not UK Finance, BSA or IMLA members.
- Since August, current account providers have been required to display objective information about the quality of services offered on their websites and in branches, helping customers to shop around and find the best account to suit their needs. UK Finance worked with both the CMA and FCA in delivering these requirements.
- The industry has implemented a number of remedies to improve competition in the cash savings market, helping savers to shop around and find the best deal. These include communicating more clearly with customers about the rates they receive, faster Cash ISA transfers and enhanced customer prompts before a rate is reduced.