We have published the Mortgages Market Study final report. It explains our final findings and provides a progress update on the proposed remedies.
In March 2019, we published our final report. The final report sets out our vision for the mortgages market as one in which:
The report explains our final findings on whether the competition in the mortgage market works for the benefit of consumers. It also includes an update on remedies.
We have sought to understand whether the consumers are empowered to choose on an informed basis between products and services and whether they are in a position to understand whether these represent good value for money.
In May 2018, we published our interim report (MS16/2.2) 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 also consulted on a range of proposed remedies. This followed the terms of reference (MS16/2.1) which were published in December 2016.
We found that the mortgage market works well in many respects. Engagement is high and consumers are getting mortgages that are suitable and affordable.
However, the mortgage market falls short of our vision in some specific ways leading to harm for some consumers who pay more than they need to for their mortgage. There are limitations to the effectiveness of the tools available to help consumers choose a cheaper mortgage. Also, there are some longstanding borrowers on a relatively high reversion rate who do not or cannot switch.
To help achieve our vision, we are proposing the following remedies:
In most cases we have sought to address issues through collaboration with industry in the first instance, rather than through rule changes.
In Q2 2019, we will be also consulting on proposals to change mortgage advice rules and guidance to help remove potential barriers to innovation.
We will also provide further updates on remedies in due course.
On 22 May 2019, we published a research note extending findings in Occasional Paper No. 33.
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