Online mortgage broker Trussle is proposing a new set of industry standards be introduced to the mortgage market in the aim of offering consumers support with switching.
In their White Paper Trussle outlines five initial recommendations designed to address the ‘switching inertia’ hindering close to three million UK mortgage borrowers.
Issues that have been raised within the Paper include a lack of uniformity and education around the pricing of mortgages and inadequate communication from lenders.
Trussle is therefore proposing the creation of a Mortgage Switch Guarantee to address these issues with the hope to move towards a state of “mortgage optimisation”.
Ishaan Malhi, chief executive and founder of Trussle, said: “Millions of homeowners are collectively losing billions of pounds because switching mortgage isn’t clear or simple.
“Thankfully there’s already consensus among senior industry figures that many aspects of the remortgage market are in need of improvement.
“But for the Mortgage Switch Guarantee to be a success, it will need to be widely adopted by lenders and brokers, and supported by regulators and government.”
Paula Higgins, chief executive of Homeowners Alliance, said: “Unquestionably, changes must be made in the mortgage market.
“The mortgage industry must make switching to a better deal as straightforward and safe as possible.”