4th Anniversary of Current Account Switch Service

Ishaan Malhi, CEO and founder of online mortgage broker Trussle

“Four years ago today, the Current Account Switch Service launched to address the challenges preventing three of every four people from switching to a more suitable bank account. Government research at the time showed that people weren’t switching because they thought the process was risky and complicated. This was creating a barrier to competition between banks, and consumers were losing out as a result. The switching promise was a radical move that held banks to account, making the process of changing bank account simple and stress-free, and it’s been major success story, leading to more than three million account switches.

“We’ve since seen the launch of an Energy Switch Guarantee, offering similar support to customers switching from one energy supplier to another. This trend is really encouraging and it’s only right that consumers feel relaxed and confident while transitioning from one service provider to another to secure a more suitable deal.

“Today the mortgage sector faces a similar problem when it comes to switching. Advancements in technology have made the switching process easier than ever, yet there are currently three million borrowers on Standard Variable Rates, likely to be paying a far higher rate of interest than they would if they were on a more competitive deal. Failing to switch at the right time is costing homeowners billions of pounds a year and it’s time that the mortgage sector followed the example of other industries by offering better protection to its customers with a set of standards to govern the switching process.

“With this in mind, Trussle is calling for a Mortgage Switch Guarantee that would require lenders, brokers, and regulators to agree on a set of industry standards to support customers during the remortgage process. A successful Mortgage Switch Guarantee could see over £10 billion saved by homeowners across the UK every year.”