Mortgage sale changes in pipeline

Changes to mortgage sales requirements which could give people more choice and help them find the right deal have been proposed by the City regulator.

The Financial Conduct Authority’s proposals aim to make it easier for firms to present a range of mortgage options to consumers without giving regulated advice, as well as requiring advisers to take account of price when choosing between suitable mortgages.

The FCA said many consumers were overpaying for their mortgages, even when they get advice.

It said that where a mortgage adviser recommends a mortgage which is not the cheapest of those that meet the customer’s needs and circumstances, they will now be required to explain why any cheaper mortgage has not been recommended. This should mean more consumers understand how price has been taken account of in the recommendation they are given – and give them an opportunity to challenge the recommendation. It will also be clearer that some forms of interaction, such as firms helping consumers with their applications, do not require advice.