MORTGAGE SWITCH GUARANTEE

That this House notes the considerable loyalty penalty within the mortgage market as identified by the Financial Conduct Authority (FCA) and Competition and Markets Authority (CMA) that sees at least 800,000 overpay on their mortgage by £1,000 a year; further notes that such figures may understate the scale of the problem and the potential savings that greater clarity and ease of switching will bring as identified by Trussle’s Mortgage Saver Review; recognises the work to bring forward a Mortgage Switch Guarantee, which advocates the following three simple commitments from lenders: to display the true cost of a mortgage's initial rate period, to show borrowers key information online or via SMS and to contact borrowers three months before their initial rate period ends; observes that the Mortgage Switch Guarantee would ensure a higher standard of transparency from lenders at each step of the home ownership journey; and calls on the FCA and Government to mandate such commitments across the mortgage industry.