ASTL: Competition review should include bridging
The FCA launched a consultation earlier this week in a bid to assess areas of the mortgage market where competition was not working well and could be improved.
Benson Hersch, chief executive of the ASTL, said: “Whilst it is understandable that price may be a key driver in the mainstream long-term market, it should not be ignored that other aspects such as certainty and speed of funding are just as important, if not more important, in niche markets.
“The ASTL welcomes the FCA’s review of competition in the mortgage market and, in particular, the impact that regulation has in this respect. Bridging finance is a growing market delivering real benefits to consumers.
“The cost of regulation can be a barrier to entry for smaller firms. But we look forward to working with the FCA in getting over the views of our members on potential improvements to competition and consumer outcomes.”
The consultation period will close on 18 December 2015. An outline of responses received and a confirmation of whether it intends to take any further action will be set out in a feedback statement, to be published in the first quarter of 2016.