FCA questions inducements in mortgage sector

Mortgage market study launched today

Tom Ellis
clock • 2 min read

Inducements in the mortgage sector paid by lenders to brokers "may influence brokers' advice and limit the number of lenders both on their panel and those they recommend", the Financial Conduct Authority (FCA) said in its mortgage market study launched on 12 December.

The regulator said this situation could limit consumer advice and create an obstacle to lenders entering or expanding the market. It added that if commercial agreements created conflicts of interest, this could affect consumer choice and lead people to buying more expensive or unsuitable products. The FCA did acknowledge, however, that commercial agreements and panel arrangements may drive positive outcomes, enable a better or quicker service and reduce operational costs. "We are interested in better understanding the impact of inducements paid by lenders to brokers, by brokers to est...

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