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Regulator’s remit does not extend to pricing of products

After reading that the government has rejected a broker petition calling for a ban on dual pricing, I noticed one comment on Mortgage Strategy Online which defended the decision.

The writer claimed lenders have their own costs and price their deals accordingly.

“You could even ask how are brokers treating customers fairly when you can go direct and not pay any extra fees or commission?” the writer says.

These comments could be better thought out. Products and pricing are not the preserve of the Financial Services Authority, which can dictate some elements of policy or even what shape the mortgage book can be, but it cannot tell us the price to charge.

Grey-haired Underwriter

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