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Mortgage deals drive 41% of bank switches among movers, research finds

New research indicates that 41% of mortgage holders who switched banks did so to secure a better mortgage deal, as affordability pressures continue for homebuyers.

  • 41% of mortgage holders who changed banks did so for a better mortgage deal.
  • 30% switched banks to access a mortgage-linked incentive.
  • Only 15% of home movers changed their bank account, compared to 46% who switched broadband.

New research has found that 41% of mortgage holders who changed banks did so to access a better mortgage deal. A further 30% switched to secure an incentive linked to their mortgage, while 28% sought higher interest rates on their savings.

The findings, from a Current Account Switch Service survey of 2,000 UK adults who had bought or rented a home within the previous two years, highlight the importance of mortgage costs to buyers amid ongoing affordability pressures.

Despite the focus on mortgage rates among those who switched, changing banks remains relatively uncommon during a home move. Just 15% of movers changed their bank account, significantly less than the 46% who switched broadband provider or 38% who changed energy supplier.

More than half of home movers researched different aspects of their move, but only 22% investigated current accounts or alternative banking options. In contrast, 50% researched local property prices.

Younger movers were more likely to consider and follow through with a switch. Half of 18 to 24-year-olds considered reviewing or changing their current account, with 22% actually making the change. This compares to just 8% of those aged over 55.

Why this matters: The findings suggest that mortgage costs are a significant factor for some borrowers when considering banking arrangements, as affordability remains a key concern for homebuyers.

What this means for you: If you are moving home, considering your current account options alongside mortgage arrangements could potentially lead to better deals or incentives.

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