Habito has announced an initiative that aims to stop its customers from reverting to a lender’s SVR.
Citing research that shows that 55 per cent of current mortgage holders could save nearly £300 in switching, Habito says that it will alert each of its customers with a ‘4 Months’ Notice’ via text messages and emails that will also set out the steps required to switch mortgage products.
As well as this, Habito reports that it is urging all mortgage lenders to “do the same,” adding that the actions of the top six UK lenders all vary in their behaviour regarding this. Research provided by Habito shows that this ranges from lenders providing 90 days’ notice to “no notice – it is up to the customer to keep up with their mortgage product timings.”
Habito chief executive Daniel Hegarty says: “As is so often the case in traditional financial services, loyalty is penalised rather than rewarded. The longer you stay with the status quo, the more you pay. People deserve better than that – they need the right information about their mortgage, given at the right time, to make the right choice on what’s best for them.”
“We strongly believe we have a duty of care to our customers to ensure that whoever their mortgage lender is, we help them avoid the trap of spending more than they should on their mortgage. It can take anywhere up to eight weeks for a remortgage to complete so if a customer is only notified the month before the end of their deal, they will most likely end up paying the lender’s SVR.”