Broadband, current accounts and mortgages are hardest products to switch
6 April 2017 | By LLB Reporter
New report shows
The annual “Switching Report” from Gocompare.com1 reveals that broadband, current accounts and mortgages are the products that customers find the most difficult to switch. Over 1,150 consumers who have shopped around for financial services and utility products in the last 12 months were asked about their experience. Changing home (88 per cent) and car insurance (86 per cent) and, gas and electricity supplier (79 per cent) were voted as the easiest switches. For the third consecutive year, mortgages were considered the most difficult product to switch with only 45 per cent of people saying that the process had been straightforward.
Rank in 2017 Product switched ‘Was it easy to switch?’ 2017 2016 2015 2014 1 Home insurance 88 per cent 84 per cent 90 per cent 90 per cent 2 Car insurance 86 per cent 82 per cent 88 per cent 84 per cent 3 Energy provider 79 per cent 76 per cent 75 per cent 75 per cent 4 ISA or savings account 76 per cent 78 per cent 78 per cent 79 per cent 5 Credit card 76 per cent 76 per cent 82 per cent 83 per cent 6 Mobile phone provider 72 per cent 68 per cent 70 per cent 72 per cent 7 Land line-telephone 71 per cent 68 per cent 78 per cent 80 per cent 8 Bank account (current account) 67 per cent 73 per cent 75 per cent 77 per cent 9 Broadband provider 65 per cent 69 per cent 72 per cent 68 per cent 10 Mortgage 45 per cent 61 per cent 59 per cent 70 per cent
Commenting on the research Matt Sanders from Gocompare.com said, “Some products are clearly easier to switch than others. But it is also true to say that some providers and sectors have embraced switching more than others. The banking and telecommunications industries clearly still have work to do to recognise consumers’ right to switch and find a better deal.”
“New tougher mortgage lending rules introduced in 2014, which changed the way lenders assess the affordability of mortgage loans probably, in part, account for mortgages being considered the hardest product to switch. Affordability criteria now takes account of a would-be borrower’s overall financial health as well as their earnings – adding to the complexity of the re-mortgaging process and the amount of information required.