Switching inertia is a major issue in the mortgage sector, so the service has been designed to prevent mortgage borrowers from unintentionally slipping onto their lender217;s Standard Variable Rate (SVR) 211; a default product which typically has a much higher interest rate 211; when they reach the end of their mortgage deal’s initial period.
Just one month on an SVR can cost the average borrower with one of the UK’s six biggest lenders around £360 in extra interest. There are currently at least two million borrowers in the UK needlessly sitting on their lender’s SVR, collectively paying close to £10 billion in excess interest every year.
Signing up to the mortgage monitoring service is simple, taking just two minutes using Trussle’s website. The borrower will then receive an email confirming that their mortgage is being monitored. Until the service finds a more suitable deal, the borrower will be prompted to update their details every three months to ensure the most accurate comparison is being made. As soon as the service identifies a more suitable deal, an automated alert will be emailed to the borrower with a link to continue the remortgage process online.
Trussle has already introduced the automated service to existing customers and in December 2017 helped their very first customer Dexter Lowe switch from his original two-year fixed deal. Dexter saved over £5,000 per year by not lapsing onto his lender’s Standard Variable Rate.
Ishaan Malhi, CEO and founder of online mortgage broker Trussle, said: “We know that at least two million mortgage borrowers in the UK are failing to switch at the right time. This is either because they don’t realise the benefits of remortgaging, forget when their current deal is due to end, or they had such a bad experience getting their last mortgage that they put off going through the process again.
“With our free monitoring service, borrowers can relax knowing that their mortgage is being proactively looked after and that they’ll be alerted and guided through the switching process when the time is right.
“Offering this service to the UK’s 11 million borrowers is another step towards our goal of completely transforming the switching process and eradicating switching inertia.”
All Trussle’s existing customers have been automatically registered to the free monitoring service.