Millions to be able to switch to cheaper mortgages within seven days under new plans
Ministers also confirmed proposals to force mobile phone operators to unlock handsets for free at the end of a contract
MILLIONS of Brits will be able to switch to cheaper mortgages within seven days under proposed new powers.
Business Secretary Sajid Javid will today start a consultation on the blanket week-long switching. It will cover everything from mobile phones and bank accounts to energy and broadband suppliers.
The move will mean fat cat lenders and banks will be forced to slash the time it takes them to complete a mortgage transfer.
Around 3.2million households — almost a third of the 11.1million with a mortgage — are on standard variable rates.
They can currently be left to sweat up to eight weeks when trying to get a new home loan.
Campaigners are furious over the service levels, but Mr Javid last night vowed that huge pressure would now be put on firms to clean up their act.
Officials said: “The Government is asking consumers and industry for evidence of how these measures can be implemented and new rules could be in place as soon as next year.”
Ministers also confirmed plans to force mobile phone operators to unlock handsets for free at the end of a contract so consumers can still use them if they switch to another provider.
Brits spend nearly £50million each year on unlocking phones.
Customers will also be able to check broadband and network coverage information for individual properties. It will allow them to judge what speeds or service they can expect as well as what other providers will offer.
And they will be “automatically compensated” by their phone firm when things go wrong under the new plans.
But insurance firms have been let off the hook over automatic policy renewals.
Last night Mr Javid said: “I want to give consumers more power over switching providers for the services they rely on to make sure they get the best deals. The Government is committed to creating a system that works for consumers and makes markets more competitive.”
Culture Secretary John Whittingdale added: “We are more reliant on broadband and phone services than ever before. So we want it to be as easy as possible for consumers to spot the best deal for them.”
Consumer watchdogs have previously criticised the Government for the time taken to force banks and energy firms to reduce switching times.
Two years ago energy regulator Ofgem vowed to bring in next-day switching by 2018.
Alex Neill, from consumer rights group Which?, said: “Quicker switching will give people more powers to force banks, energy suppliers and telecoms providers to up their game or lose their custom.”
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