Citizens Advice explores the ‘loyalty penalty’ in the mortgage market.

August 8, 2017

In a recent Policy Research Publication from Citizens Advice headlined ‘Exploring the loyalty penalty in the mortgage market’ they state:

‘Home ownership is the aspiration of millions of people in the UK. For the vast majority, taking out a mortgage is the only way of achieving this. In 2016, the UK mortgage market included 11.1 million mortgaged properties, £245 billion borrowed, and average monthly repayments of £3,774 million.

While the mortgage market works well for the majority of homeowners, many experience problems when engaging with it. Last year, Citizens Advice advised 4,147 clients on mortgages and secured loans. Our data allows us to spot new pockets of consumer detriment and respond accordingly.

This policy note focuses on one type of detriment – the ‘loyalty penalty’ that mortgage customers pay when they stick with the same deal after their initial fixed rate expires. Citizens Advice is currently examining how providers of essential services frequently charge loyal customers far more than newer customers for the same product.’ more….

Read the Policy Research Publication from Citizens Advice in full  including the results of their analysis of the mortgage market click here.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Forget kerb appeal: LRG report reveals what really triggers a homebuyer’s offer

One of the UK’s largest property services groups has published its debut sales report, uncovering what genuinely persuades buyers to make an offer – and the findings challenge the traditional focus on kerb appeal. While sellers often guess which improvements will pay off, the data shows where money is well spent and where it’s wasted.…
Read More →
Breaking News

Prime London’s love affair with period homes continues

One in four listings are historic properties The latest research from Jefferies London shows that nearly a quarter of homes listed for sale across prime central London (23.3%) offer high-end homebuyers the chance to secure a period property, with demand for prime period properties at its highest in Maida Vale. Jefferies London analysed current for…
Read More →
Breaking News

Industry Response to latest Nationwide House Price Index

Nationwide House Price Index for October 2025, with the latest figures showing no Halloween haunting for homebuyers where house price growth is concerned – despite widespread talks of Autumn Budget uncertainty hitting the market. The latest index shows that: – House prices increased by 0.3% between September and October of this year. On an annual…
Read More →
Breaking News

The capital’s most haunted property hotspots for Halloween homebuyers

The latest analysis by Foxtons has revealed which of the capital’s spookiest postcodes command the largest house price premiums, as the average cost of purchasing a property in one of London’s most haunted neighbourhoods comes in 48% more than the wider London average. Foxtons analysed the property market across 14 of London’s most haunted locations,…
Read More →
Breaking News

Annual house price growth edges higher in October

Slight increase in annual house price growth to 2.4% House prices were up 0.3% month on month Kitchen and bathroom renovations most popular amongst homeowners in last five years Analysis based on Nationwide’s HPI data shows extensions or loft conversions with a bedroom can increase house value by up to 24% Headlines Oct-25 Sep-25 Monthly…
Read More →
Breaking News

How much will a Halloween Castle set you back

The latest research from Enness Global has revealed that, for those looking to follow in the footsteps of Count Dracula this Halloween, the average castle on the UK market will set buyers back around £2.2 million, requiring a deposit of £332,609 and a monthly mortgage repayment of more than £10,000. Enness Global analysed current castle…
Read More →