Second charge mortgage firms told to raise standards for consumers
Why this matters
This regulatory update from the FCA focuses on issues in the second charge mortgage market, which is relied upon by consumers with high existing debt levels. The FCA has identified weaknesses in firms' practices around affordability assessments, advice, record-keeping, and fee transparency, which could put vulnerable borrowers at risk of financial harm. The FCA is calling for immediate improvements across the sector and will be monitoring firms closely, indicating a high level of urgency.
AI-generated classification rationale, not a full analysis. Verify with the original FCA source before acting. Full disclaimer.
What the FCA said
Lenders and brokers in thesecond charge mortgagemarket need toconsiderhow theyadvise customers, assess affordability and charge fees. An FCA review has found that weaknesses in some firms’ practices could put borrowers, particularly those consolidating debt, at increased risk of financial harm.Second charge mortgages…
Extract from FCA . Read the full notice at the source for the authoritative text.
Context
Financial Conduct Authority (FCA) — UK financial services regulator. We track 425 updates from them.
Financial services regulation in the UK, primarily overseen by the FCA and PRA. Browse all United Kingdom updates.
This update is classified under Consumer Protection / Conduct, Prudential / Capital Requirements, Banking & Credit and Consumer Credit.