However, a major concern in the market remains fraud, which many claim the MMR and the stringent tests it introduced could help to tackle, but which was not a primary objective of the reforms.
The City watchdog has stated it is intensifying the crackdown on mortgage fraud to tackle this serious and widespread problem. In January, it restated a number of rules and updated its guidance for lenders to help prevent fraudulent activity.
As for brokers, the regulator is keen to ensure they are part of the process.
A spokesman for the FCA states: “It is essential that, as a mortgage broker, you have sufficient controls in place to prevent your firm being used for committing fraud.
“You should also remember you are responsible for reporting any wider suspicions of fraudulent activity, or examples of poor practices resulting in potential fraud you have noticed. This is in addition to your statutory duty to report suspicious activity.”
This guide explains tactics used by mortgage fraudsters, how to spot dodgy deals, what the regulator expects from you and the ramifications of committing this type of crime.
Supporting material provided by: the Council of Mortgage Lenders; the Financial Conduct Authority; Mark Spiers, head of wealth at Bovill; Martin Reynold, chief executive of SimplyBiz Mortgages; and Christine Newell, partner manager at Paradigm Mortgage Services.