Mortgage market competition to be reviewed by FCA

In particular, it will focus on the the regulatory regime (including changes introduced following the Mortgage Market Review), and any other barriers to entry, expansion or innovation.

It is also seeking views on consumers' ability to effectively access, assess and act on information about mortgage products and services, and firms' conduct and relationships.

Christopher Woolard, Director of Strategy and Competition at the FCA, said: "For millions of consumers a mortgage is one of the biggest, if not the biggest, financial transaction they will enter into in their lifetime. The mortgage sector also plays a vital role in the financial services industry and many areas of the economy.

Competition can play a key role in ensuring that the sector works well, delivering consumer benefits through lower prices, better customer service, and more product choice.

We are seeking stakeholders' views on competition in the mortgage sector. These views, together with evidence from the FCA's wider programme of work on mortgages, will help inform any future FCA work on this key sector of the economy, including any future competition market study."

CML director general Paul Smee said: "The FCA's role in promoting competitive markets is the part of regulation that best helps foster creativity, innovation and a sharp focus on what drives customers. It's also essential in delivering the kind of environment in which reputable lenders of all shapes and sizes can thrive. We will be working with all our members to ensure that their perspectives are fully reflected as we work with the FCA on this vital issue."