If the plans proposed by the FCA are approved, then homeowners could soon enjoy more choice when selecting a mortgage. The FCA is consulting. They are seeking to investigate if the organisation’s regulations are damaging competition within the market. Such a concession accepts that rules set by the FCA could mean borrowers are paying more for their mortgage than needed.
The new rules
The FCA hopes to change its rules. They are making it clear the tools that allow customers to search for mortgages may not be giving the most suitable advice. These changes would also mean an adviser would need to offer the cheapest mortgage while explaining any recommendations for a more expensive option.
In short, the FCA is proposing greater clarity between the boundary between execution-only sales channels and sound mortgage advice, with the most suitable products offered.
Companies will then be compelled to offer factual information to customers. It should also allow those looking to switch deals to do so more efficiently and effectively.
The new FCA rules are expected for release by the end of 2019.
The content in this article was correct on 10th June 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions for teachers and non-teachers. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.