UK FCA launches mortgage market review
The regulator will explore whether available tools, including advice, help mortgage consumers to make effective decisions.
The FCA will look into whether commercial arrangements between lenders, brokers and other players lead to conflicts of interest or misaligned incentives to the detriment of consumers.
The regulator will also try to gauge if there are opportunities for better technological solutions to problems it identifies, including greater use of digital channels to deliver information or advice.
Christopher Woolard, executive director of Strategy and Competition, said: "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."
The FCA, whose investigation will focus on residential mortgages, aims to publish an interim report in the summer of next year.
The Council of Mortgage Lenders welcomed the FCA's "focused and constructive approach" in undertaking a market study on mortgages. ■