Lenders must do more to promote mortgage switching, says FCA

Abstract

In a report released today, the regulator explains that, based on H2 2021 data, 74% of active mortgages - 6.3 million - are on fixed rate and, of those remaining - 2.2 million - half are on discount or tracker rates and half on reversion rates. It adds that the number of borrowers who have switched when doing so would save them money has improved "Significantly," dropping from 800,000 in 2016 to 370,000 at the latest count. Regarding those 370,000 mortgages, the FCA reckons the saving from switching to a two-year fixed rate with the existing lender would come to an average of £1,240 per year.