Advice makes switching lender twice as likely

Of those who booked a mortgage directly with a lender 36% switched lenders while 68% of those who booked via an intermediary switched lenders.

The study attributes the low level of retention by lenders to a failure in taking communicative action at the right time.

The study said: “A high proportion of remortgagers and movers who do not receive contact will go on to proactively approach their lender. Yet many will just start the shopping process independently and the vast majority of these will be lost.”

Dale Jannels, director at All Types of Mortgages, said: “It makes sense as a broker is clearly going to work harder to save a customer money than a lender is. Any savvy intermediary is going to get in touch with their customer two or three months before their mortgage expires and offer them another good deal.

“In the current climate, there’s not many lenders that will offer a good retention product. If someone stays on a reversion rate, unless its something really attractive, there’s something bound to be better out there.”