FCA final report on mortgage market study

On 26 March 2019, the FCA published its final report on the mortgage market study. The FCA found that the mortgage market works well in many respects. Engagement is high and consumers are getting mortgages that are suitable and affordable. However, the FCA also found that the mortgage market falls short of its vision in certain ways leading to harm for some consumers who pay more than they need to for their mortgage. There are limitations to effectiveness of the tools available to help consumers choose a cheaper mortgage. In addition, some longstanding borrowers on a relatively high reversion rate cannot switch. The FCA proposes the following remedies: seeking to speed up more widespread participation by lenders in innovative tools to help customers more easily identify mortgages they qualify for; consulting on proposals for new lending rules on how lenders assess whether or not a customer can afford to switch to a new loan; consulting in Q2 2019 on proposals to change mortgage…

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