We are publishing our final rules and guidance on mortgage advice and selling standards.
The changes outlined in this Policy Statement (PS) are part of a package of remedies arising from the Mortgages Market Study.
These remedies aim to work together to support our objectives to ensure consumers have the information and support they need to make informed choices about how they buy a mortgage.
The Mortgages Market Study (MMS) identified three potential harms relating to our mortgage advice and selling standards:
To address these harms, we consulted on changes to our mortgage advice and selling standards, in Consultation Paper 19/17.
This PS summarises the feedback we received and sets out our final rules.
The changes we have made in this PS make it easier for firms to present options to consumers without giving regulated advice. They help firms make execution-only sales channels easier to use.
Similarly, recent changes to our responsible lending rules reduce regulatory barriers and help consumers get a mortgage that is right for them. These two changes complement each other to deliver the outcomes we want to see.
This PS will be of interest to:
The changes to our rules and guidance will come in to force on 31 January 2020.
To allow firms time to adapt their process to accommodate the changes, some of the rules will be subject to transitional provisions until 30 July 2020.