Investigation Launched into Competition in the Mortgage Market
The City of London regulator, the Financial Conduct Authority (FCA), has launched an investigation into competition in the mortgage market.
It is concerned that the current regulatory system could be stopping new borrowers entering the market. The Mortgage Market Review (MMR) tightened lending rules and requirements in April 2014.
The FCA is also investigating whether borrowers can find out information about mortgage products and services easily enough.
Director of Strategy and Competition at the FCA, Christopher Woolard, says: “A mortgage is one of the biggest, if not the biggest, financial transaction millions of consumers will enter into in their lifetime. The mortgage sector also plays a vital role in the financial services industry and many areas of the economy.”1
He notes that competition is important to ensure that the sector operates well, by causing lower prices, better customer service and more product choice.
The FCA has launched a Call for Inputs to collect evidence from interested parties, such as consumer groups and lenders. It will close on 18th December 2015. In the first quarter of 2016, an outline of responses and a further action plan will be published, with the option of a full market study later in the year.