Responding to FCA Chief Executive Andrew Bailey’s letter to the Treasury Committee on improving switching options for mortgage customers who are currently unable to do so, Jackie Bennett, Director of Mortgages at UK Finance, said:
“It is a positive step that the FCA has set out the action it will take to help those customers stuck on reversion rates who are with inactive or unregulated lenders.
“The FCA has noted the progress made through the industry’s voluntary agreement to help borrowers with active lenders switch to a better deal.
“But it has also recognised that regulatory changes are needed to remove the barriers to helping the thousands more customers who are currently with inactive and unregulated lenders.
“We will continue to work constructively with our broad range of members and the FCA to help ensure those customers who want a like-for-like mortgage can switch lenders more easily.”
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Notes to Editor
- UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.
- UK Finance, the Building Societies Association (BSA) and the Intermediary Mortgage Lenders Association (IMLA) announced a cross-industry voluntary commitment in July, committing to contact customers on reversion rates with active lenders by the end of 2018 if they haven’t already done so.
- UK Finance figures show that in the first 9 months of 2018 there have been 865,000 product transfers on mortgages worth a total of £113.4 billion. These figures show that customer engagement remains high and the majority of mortgage customers switch to a new deal shortly after their previous deal expires.
- Economic Secretary to the Treasury John Glen recently wrote a letter to the Treasury Committee on mortgage prisoners, stating that the Treasury is working with the FCA to explore legislative solutions for customers with inactive lenders.