The BSA has responded to the Department for Innovation and Skills (BIS) call for evidence on improving the consumer landscape and quicker switching.
This call for evidence is further to a call for evidence BIS published in October 2015 setting out 6 switching principles. BIS initially focussed on how these principles could be adopted across the energy, telecoms and current accounts sectors. However, BIS is now keen to consider how these principles could be applied to other industries, with Mortgages a particular focus.BIS believe that reducing switching times to a maximum of 7 days will encourage more borrowers to switch providers and find better deals, driving competition. However evidence suggests that consumers value reliability over speed of process.
We strongly believe that given the nature of mortgages, which are distinctly different from other sectors within scope of this consultation, it is completely inappropriate to apply a compulsory 7-day switching process to mortgages.
We feel that extending these proposals to mortgages is seeking to resolve an issue that there is no evidence exists and will only serve to add cost for little discernible consumer benefit.
This consultation closed on 23 June 2016
To view the call for evidence and the BSA's response please see the links below
BIS call for evidence on quicker switching
BSA Response to BIS call for evidence quicker switching