Financial watchdog wants to know if the mortgage system is working to the detriment of consumers
Britain's financial regulator has put the competitiveness of the mortgage sector under the microscope and launched a sweeping review into industry practices.
The Financial Conduct Authority (FCA) today announced it wants to focus on whether or not customers are getting the best deal from the commercial arrangements between lenders, brokers and other players.
Read more: Remortgaging valuations boom as homeowners try to clinch low interest rates
The industry watchdog also wants to know whether customers get enough advice and support in order to make the best decision when selecting a mortgage.
The review is a follow-up to a wider initiative by the FCA into competition in the mortgage sector. It includes further detail on work it has done to date.
“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,” said Christopher Woolard, executive director of strategy and competition at the FCA.
Read more: FCA names and shames banks with lowest cash interest rates
A connected element to be reviewed by the FCA is how technology can be used to better address problems identified in the mortgage sector.
An interim report is to be published next summer with a final report slated for early 2018.