View more on these topics

FCA to examine mortgage market competition

House-Home-Property-Ladder-Mortgage-700x450.jpg

The Financial Conduct Authority has launched a market study to find out if competition in the mortgage market can be improved to help consumers.

The FCA says it wants to know if consumers have an “empowered” choice between products and services and can understand if these are good value for money.

The market study will explore two areas: whether consumers can make “effective decisions” at each stage of the buying process, and how tools including advice affect this, and whether commercial arrangements between lenders, brokers and other players lead to conflicts of interest or “misaligned incentives” that harm consumers

The FCA is focusing on first charge residential mortgages.

Areas it is interested in include best buy tables and the impact of the Mortgage Market Review.

The FCA will also review if better technology can help consumers, including greater use of digital channels to deliver information or advice.

The FCA first announced it was looking at the market May and will report back next summer to give its preliminary conclusions.

It will then publish a final report in early 2018. The regulator can then make new rules, publish new guidance or remove existing rules.

FCA executive director of strategy and competition Christopher Woolard says: “As a mortgage is likely to be the biggest financial commitment most people make in their lifetime, we’re keen to ensure that competition in the mortgage sector is healthy and working to the benefit of consumers.”

Recommended

Ian-McKenna-in-2013-700.jpg

Ian McKenna: Making mortgage advice easier through technology

It has become far more difficult for mortgage advisers to provide potential borrowers with certainty their loan will be accepted in a post-MMR world. For the client, it can a very emotional process. Iress, working with Experian’s HD Decisions business, has introduced additional functionality to its Xplan Mortgage software that enables advisers to give clients […]

Sainsburys-Building-2013-700x450.jpg

Sainsbury’s to re-enter mortgage advice market

Sainsbury’s Bank has confirmed that it will re-enter the mortgage market in the first half of 2017, saying it has “made good progress with developing its mortgage proposition.” Money Marketing sister title Mortgage Strategy revealed in April that Sainsbury’s was planning to re-enter the market after an absence of 12 years and was in talks with […]

Robert-Sinclair-2012-700x450.jpg

The grey regulation on execution-only mortgage advice

The challenges facing the larger mortgage lenders at the moment could not be more intense. The agenda is complex: house prices are coming off their peak in London, Help to Buy is beginning to be withdrawn, more new entrants and competitors are taking market share, the base rate is at record lows and they are […]

Responsibility Matters

The latest update from the Sustainable Investments Team at Royal London Asset Management, Responsibility Matters, is now available. In this edition the team look at issues such as the growing acceptance of sustainable investing and technology in China. Read the update here: The value of investments and the income from them is not guaranteed and […]

Burnett: what needs to happen for value to start performing again?

Value stocks have significantly underperformed growth stocks in Europe in the past decade. However, Rob Burnett, manager of the Neptune European Opportunities Fund, believes we are now approaching an inflection point. Watch the video below to find out more. In the video, Rob discusses: How low inflation and loose monetary policy since the global financial […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Keeps them in work I suppose

  2. //////”The FCA says it wants to know if consumers have an “empowered” choice between products and services and can understand if these are good value for money.”

    I would like to know exactly how the FCA are going to find out. The former leader slammed the nation by informing a committee that 50% of the population didn’t know what 50% actually meant. Just how in the name of Zuess’s butt would they expect a consumer to know that they have an empowered choice or are getting value for money from a plethora of information given?

Leave a comment