UK government considering plans for seven-day mortgage switching

Plans to make switching providers quicker and easier across a range of sectors, including energy companies, phone providers and banks, are being considered by the UK government.

The Department for Business, Innovation & Skills (BIS) is taking the first step towards consistently quicker switching across all major services by setting out proposals which could allow consumers to switch provider in a week or less. The government is asking consumers and industry for evidence of how these proposals could be implemented and new rules could be in place as soon as next year.

The call for evidence looks at how long it takes for people to switch providers across a number of markets, including energy, broadband, mobile phones, current accounts and mortgages, and asks what more could be done to speed the process up.

Business Secretary Sajid Javid said: “I want to give consumers more power over switching providers for the services they rely on to make sure they are getting the best deals. The government is committed to creating a system that works for consumers and makes markets more competitive.

“At the moment the time it takes to switch depends on which service you are switching. I want to hear what consumers and businesses think of making switching quicker and more consistent across all markets.”

The Council of Mortgage Lenders (CML) said it supported faster switching, but questioned whether a one week timescale was practical.

“Whether a seven-day target is realistic, given tasks that lenders need to complete to fulfil risk and regulatory requirements, depends on when the clock starts ticking,” said Paul Smee, the CML’s director general.