DP14/2 Fairness of changes to mortgage contracts

Published: 07/07/2014     Last Modified: 07/07/2014

Why are we issuing this Discussion Paper (DP)?

This DP is an opportunity to open up the discussion and be transparent about the factors that may be relevant when considering the fairness of changes to regulated mortgage contracts. We are seeking views from both firms and consumers on this topic.

To give this discussion some context, we give examples and discuss a non-exhaustive range of changes that firms may wish to make to their mortgage contracts, including variations to interest rates, changes to their lending criteria or the withdrawal of a particular product or feature. We ask what factors may be relevant when considering whether a particular change is fair.

This DP considers the fairness of changes to regulated mortgage contracts only - this means mortgage contracts entered into on or after 31 October 2004 which fall within the FCA’s remit. We are not considering contracts that are not regulated by the FCA, such as buy-to-let mortgages.

Who does this DP affect?

The DP will be of interest to:

  • mortgage lenders
  • mortgage intermediary
  • trade bodies
  • consumers or a representative of consumers

This DP aims to provide an opportunity for firms as well as consumers to discuss the meaning of fairness when considering a change to a regulated mortgage contract. It will be of interest to retail consumers and those who represent consumer groups because it discusses the application of the FCA’s current regulatory framework and asks whether this framework is sufficient to ensure appropriate protection for consumers.

DP14/2 Fairness of changes to mortgage contracts [PDF]


This DP gives consumers the opportunity to discuss whether the FCA’s current regulatory framework is sufficient to ensure consumers are protected. We are interested in hearing your views and about your experiences or expectations of the mortgage market and regulated mortgage contracts. We also want to hear what you think makes a change to a mortgage contract fair or unfair.

We have a chapter of the discussion paper aimed specifically at our consumer readers.  This can be read either as a stand-alone chapter or in conjunction with the rest of the discussion paper.  

Chapter 3: Consumer experiences of the mortgage market

What are the next steps?

Online response form

We are asking for comments on this discussion paper by 30 September 2014.

We have set out a number of questions throughout this DP (which are summarised on pages 42-44). You can contact us via the online response form or you can email us at mortgage.dp@fca.org.uk.

Want to find out more?

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