FCA to evaluate success of mortgage market review

Minutes of an FCA board meeting in September, published last week, revealed that the board was fully behind the “current direction” of regulatory changes, but that there needed to be “robust communications” around the aims of the MMR.

The board expressed concerns about the effect of exit fees on the market’s competitiveness, while there were also questions over whether borrowers would have a sufficient choice of providers should they be turned away by those with highly automated systems.

It also pledged to review how actions from the Bank of England’s Financial Policy Committee were affecting the market, clearly referring to George Osborne’s decision to appoint the MPC to review the government’s Help to Buy scheme.

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The chancellor’s announcement, made at the same time the meeting occured, was sparked by fears that the government iniative could overheat the housing market.

A spokesman for the FCA said a six-month check-up on the MMR’s impact is “not guaranteed”, but that the board may request a review should the FPC change its stance or if it was deemed necessary.

The findings of an internal review would then be published in FCA board meeting minutes next year.

Adviser comment: Brian Brotherton, mortgage adviser for Essex-based The Partnership, previously expressed concerns that the mortgage market review will not change poor relations between banks and the intermediary market.