Mortgage market expected to polarise further
following latest FSA proposals

The FSA has signaled its intention to exempt ‘high net-worth clients’ and ‘mortgage professionals’ from standard lending rules in its latest Mortgage Market Review (MMR) paper, catering further for their particular needs by relaxing its guidance on interest only, lending into retirement and multiple sources of income, including bonuses.

Whilst there is bound to be some debate about who exactly fits into these categories, what is certain is that the mortgage market will polarise further into ‘mainstream’ and ‘niche’ sectors.

Lenders will look for a more cost effective way of distributing mainstream products through the internet and high street branches, with less involvement for mortgage brokers. But where there is an element of discretion in a niche sector, there will be a lighter regulation of products, more care required and more choices to be made. It is here that an experienced independent broker’s advice will be valued by clients.

We will discuss the consequences of the FSA’s latest thinking in a more detailed review soon. In the meantime, if you want to know more about what the changes mean to you, please call us on 0800 980 8777.