Mortgages Market Study: MS16/2

Terms of reference
Interim report
Final report
Spring 2019
Spring 2019

We have published the Mortgages Market Study interim report. It explains our findings and the way we would like to see the mortgages market develop. 

Show MS16/2.2 Interim report (PDF)


MS16/2.1 terms of reference (PDF)

Our market study

In the Feedback Statement, following our Call for Inputs on competition in the mortgage sector, we announced our intention to launch a market study focusing on areas where competition can potentially be improved for the benefit of consumers. 

We want to understand whether consumers are empowered to choose on an informed basis between products and services, and are in a position to understand whether these represent good value for money.

The market study explores two questions:

  • At each stage of the consumer journey, do the available information and tools (including advice) help mortgage consumers make effective decisions?
  • Do commercial arrangements between lenders, brokers and other players lead to conflicts of interest or misaligned incentives to the detriment of consumers?

We also explore whether there are opportunities for better technological solutions to problems we identify, including greater use of digital channels to deliver information or advice.

The focus of the study is first-charge residential mortgages. Commercial mortgages, second charge and buy-to-let mortgages are not within scope but we will take into consideration any insights gained through the market study.

Interim report

In May 2018 we published our interim report which set out our provisional view on the way competition works in the mortgages market and how we would like the market to develop. We are consulting on a range of proposed remedies.

Show MS16/2.2 Interim report (PDF)


Annex 1: Views from stakeholders on the Terms of Reference (PDF)

Annex 2: Sources of evidence (PDF)

Annex 3: Finding a mortgage – supplementary analysis and research (PDF)

Annex 4: Methodology of the dominance and matching analyses (PDF)

Annex 5: Findings on lifetime mortgages (PDF)

Annex 6: Our approach and methodology for the switching analysis (PDF)

Annex 7: Additional findings on commercial relationships (PDF)

Annex 8: Econometric analysis for assessing the impact of commercial relationships (PDF)

Annex 9: Questions for discussion (PDF)

To inform our analysis of barriers to switching, a number of mortgage intermediaries carried out a short survey of their customers on our behalf. We report the findings of the survey in the interim report. To request a spreadsheet containing the anonymised results of the survey please email: [email protected]

    Next steps

    We are consulting on our proposed remedies and we want to engage with a wide range of market participants.

    Chapter 9 of the interim report contains a series of questions on which we would specifically be interested in stakeholders’ views. Stakeholders will have until 31 July 2018 to comment on the interim report before we publish our final report around the end of the year. 

    Please send any comments or queries:

    • email: [email protected]
    • write to: Mortgages Market Study, Strategy & Competition Division, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.

    Find out more about how we conduct market studies.