The Financial Conduct Authority has performed a U-turn in its attitude towards having a fully advised mortgage market, Paul Broadhead from the Building Societies Association has observed.
Broadhead (pictured) was responding to the Mortgages Market Study Final Report, which said that some consumers are being ‘channelled unnecessarily into advice’.
The report also suggested that non-advised customers knew what they were doing before the Mortgage Market Review made advice a primary part of the market in 2014.
Broadhead, head of mortgage policy at the BSA, said: “They wanted to move to a fully advised mortgage market in 2014. Now there is a shift where they want to stay away from it.
“It’s a U-turn from the regulator.
“It’s welcome. If they think things have moved on from 2014 and in 2019 rules are inhibiting innovation it’s only right they should be able to change those rules.”
Since the MMR rules came into force 97% of new sales have been advised, up from 70% before.