Britain’s markets watchdog has found that nearly a third of UK homebuyers fail to get best mortgages
Britain’s markets watchdog has found that a large number of homebuyers do not get the best mortgage deals. It has proposed changes on Friday as it found that nearly a third of homebuyers in the UK fail to get best mortgages. It has proposed to make it easier for people to find the best mortgage after it found that nearly 30 per cent of borrowers fail to the find the cheapest deal.
The Financial Conduct Authority (FCA) published the interim findings of a review into Britain’s trillion-pound mortgage market, launched in December 2016 to determine whether customers could obtain better deals and if links between industry players limit choice.
Housing in the UK has been beyond the reach of many people in recent times, especially the younger generation, due to existing high costs of buying a home. This situation has been further complicated by a severe housing crunch which has put the government under pressure to focus on new housebuilding, as the present housebuilding figures fall way behind the target.
FCA executive director of strategy and competition, Christopher Woolard said in a statement that for many the market is working well with high levels of consumer engagement. However, it believes that things could work better with more innovative tools to help consumers. There are also a number of long-standing borrowers that have kept up-to-date with their mortgage repayments but are unable to get a new deal; the FCA wants to explore ways that it, and the industry, can help them.
The report found little evidence that current commercial arrangements between firms in the market are harming customers.
The watchdog recommends making it easier for customers to identify the right mortgages and best brokers at an early stage.
The FCA intends to work with the sector to develop metrics to help consumers to compare brokers, the FCA said.