The FCA has published Thematic Review 15/9: Embedding the Mortgage Market Review: Advice and Distribution as well as an independent customer research report Understanding consumer expectations of the mortgage sales process.

The two documents consider customers’ experience of receiving advice and the extent to which firms are recommending mortgages that are suitable for a customer’s individual needs and circumstances following the implementation of the mortgage market review.

The two studies found that:

  • many lenders have taken significant steps to provide advice for the first time. These firms, and those that have always provided advice, should now focus on delivering consistently good outcomes for customers;
  • there was no evidence of systemic customer detriment;
  • some firms were failing to take reasonable steps to obtain sufficient, relevant information about customers’ needs and circumstances before making recommendations; and
  • the consumer research highlighted that some customers place the greatest importance on the initial monthly payment to the detriment of other factors. This can dictate whether they think a mortgage is a ‘good deal’ or not.

View FCA review finds that most mortgage customers get suitable advice but “scope for improvement”, 9 July 2015