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<p>There are comparatively high levels of customer engagement in the UK mortgage market,
with 75% of customers taking out a new product within 6 months of being on the reversion
rate.</p><p>Whilst the levels of customer engagement are comparatively high in the
mortgage market, the Government is not complacent. That is why HM Treasury (HMT) has
worked closely with the Financial Conduct Authority (FCA) on changes to their lending
rules, which will remove the regulatory barrier which currently prevents some borrowers
from switching to a new deal. These changes will be in place before the end of the
year.</p><p>HMT also supports the current FCA research into customers who could switch
at the end of the fixed introductory period but who choose to stay on the reversion
rate.</p><p>No recent representations have been made to the Chancellor of the Exchequer
on the loyalty penalty in the mortgage market.</p>
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