FCA fleshes out broker comparison tool plans

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The Financial Conduct Authority has given more details of its plans to set up a service that lets consumers compare mortgage brokers.

The plans were unveiled this morning in the regulator’s interim mortgage competition report.

Speaking to Mortgage Strategy, FCA director of competition and economics Deb Jones says the watchdog’s research has shown that the broker used “can make a pretty significant difference” to how much consumers end up paying.

As such, the new comparison tool may use brokers’ access to lenders and ability to find cheaper loans as one of its metrics, she says.

The final version of the comparison service is up for grabs, but other metrics could include how many complaints have been made against the firm and firms’ overall speed of service, she says.

Jones adds: “There is quite a lot that could go in there, and we may have to whittle it back a bit. We do have to operate in the real world, where consumers have to make decisions quickly and have information readily comparable.”  

She says the FCA will be careful to make sure any comparison service is fair to brokers regardless of their size.

She says: “As we develop these proposals we will make sure that all voices are heard.”

The FCA has launched a consultation on mortgage competition, which is open to all until 31 July.

 

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