Home owners increasingly switching mortgage providers, says HSBC report

NEW DELHI: In search of getting a better home loan deal and to save on their equated monthly instalments, a large number of homeowners across the world are switching their mortgage providers, reveals a report by HSBC Bank.

According to HSBC’s new Beyond the Bricks survey titled ‘The Value of Home’, conducted in 10 countries and covering more than 10,000 people, 44 per cent of home owners have switched their home loan providers. The survey also reveals that 61 per cent of respondents have investigated getting a better deal by switching their mortgage.

The UK has the highest number of people who switched their home loan providers at 53 per cent, followed by the US and France at 52 per cent. Among Asian countries, Singapore and China had the highest number of people who shifted to other home loan providers.

Richard Napier, HSBC’s global head of mortgages, said, “Most customers still wait for a trigger such as moving home or a deal expiring before they reassess their mortgage. Given the potential savings available, people should consider a regular check on what is available in the market.”

The trend is also more prevalent among affluent homeowners, who are more likely to switch mortgage providers. Most of the respondents (55 per cent) cited interest rate rise as the main reason for switching home loan providers.

Mortgage providers are primarily driven by a desire to get a better dealer because of interest rate rises, with 55 per cent of mortgage holders citing this as the reason for their switch. About 24 per cent switched because their existing mortgage deal expired.