The results from a recent FCA mortgage market study that reviews the competition in the mortgage market and assesses how consumers and firms behave and work is now available. One of its findings is that there is little evidence that commercial arrangements between lenders and intermediaries are leading to poor consumer outcomes.
‘This new study finds that the competition in the mortgage market is working well for many consumers. They give examples such as the large amount of choice and consumer engagement in the mortgage market. According to the FCA over 75% of consumers are switching to a new mortgage deal within six months of moving to a reversion rate. This is a really encouraging statistic as it means that these consumers will hopefully find that their mortgage costs reduce by switching to a new mortgage deal. It also shows how the mortgage consumer has changed as it is evidence that people are prepared to move mortgage lender in order to get a better rate or a product that they believe is better suited to them. Our Lonsdale Mortgages mortgage broking team in St Albans often deal with consumers who may not have switched their mortgage before. If this is the case we will review their current mortgage and assess their financial circumstances before offering mortgage advice. We will then explain to them how each of the products work and their advantages and disadvantages before recommending a mortgage product that would suit their financial situation. Once the customer agrees on the type of mortgage product that would suit them we can review the mortgage market to find the most suitable mortgage lender for them. We would recommend anyone who has never switched their mortgage or whose mortgage deal is coming up for review contacts our mortgage broking team on 01727 845500 for a free initial mortgage consultation.’
The FCA has outlined several areas where the mortgage market could work better and these will be considered in the next phase of the study. These include:
Enabling people to choose the right mortgage
The FCA would like to help people find the right mortgage product for them and understand which products they qualify for. The FCA wants to explore how the mortgage market could introduce tools to make it easier for consumers to find products they are eligible for, to assess and compare these products and ultimately take out a mortgage.
Helping people make choices about mortgage advice
According to the survey almost all consumers receive mortgage advice before taking out a mortgage with a new lender. The FCA would like consumers to have the opportunity to decide how much support they needed, and in what form, because this should result in more effective decision-making.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the mortgage repayments’
For more information read: Amy Kadir, Mortgage Broker, St Albans – Why use a mortgage broker? Amy Kadir, Mortgage Broker, St Albans gets excellent mystery shopper score