On 12 March 2026, the Financial Conduct Authority (FCA) published the findings of its review of mortgage advice, fees and charges, and affordability assessments by second charge mortgage intermediaries and lenders.

The findings are primarily relevant to firms who advise on, or provide, second charge mortgages. But aspects of it may also be of interest to other firms in the wider mortgage market.

The FCA found examples of good practice across both intermediaries and lenders. But it also found evidence of some poor practices that can create a risk of poor customer outcomes. In particular:

  • Standards of advice, particularly for debt consolidation, could be improved.
  • Affordability assessments could be more robust.
  • Intermediaries and lenders could improve the way they work together to deliver good customer outcomes.
  • Firms’ record keeping was sometimes incomplete.
  • Intermediary fees were higher than for first charge mortgages, and hard to compare.

The FCA provides detailed findings on the above.

Next steps

The FCA:

  • Expects second charge firms and their boards to consider its findings within the context of their firm and take appropriate action to address relevant issues and help make sure customers are achieving good outcomes.
  • Is communicating directly with the firms included in its review about the remedial action it expects them to take. The FCA will continue to monitor firms through its supervisory work. Where appropriate, the FCA will follow up to make sure they are considering the points raised to drive improvements across the second charge sector. Throughout its work, the FCA will continue to consider its full range of regulatory powers.
  • Is also considering policy changes to further support good customer outcomes for customers consolidating debt. For example, through work on protecting vulnerable customers in the Mortgage Rule Review.