Skip to content

FCA to make it easier to get a mortgage without advice

The Financial Conduct Authority is pressing ahead with rule changes that should make it easier for people to take out mortgages without getting advice.

As detailed by the regulator in a policy statement, suggesting a customer does or doesn’t take out a type of mortgage, like a variable mortgage, will not be considered advice.

Instead it will be seen as generic advice or information.

The process would stray into personalised mortgage advice should the customer be given the monthly cost of a mortgage or be told whether they’d be eligible for a particular mortgage.

Tech tools that allow consumers to search and filter mortgages won’t necessary constitute giving advice.

Despite objections from advisers, the regulator will allow mortgage firms to market execution-only sales channels and price them differently to advised channels.

The FCA reiterated that it did not find evidence that consumers who receive advice make better choices than without.

Topics

Related